- Prime US REIT's 1Q23 update shows resilient operational numbers. While occupancy is expected to see slight fluctuations on tenant movements, we expect it to remain above 85% with slight positive rent reversions.
- - Read this at SGinvestors.io -
- Keep BUY rating on Prime US REIT with new US$0.57 target price.
Prime US REIT's 1Q distributable income down 22.5%
- Prime US REIT (SGX:OXMU)'s 1Q23 distributable income was down 22.5% (on a like-for-like basis), mainly on increases in financing costs (40% of the decline), absence of WeWork termination income (30%), and higher operating expenses (21%).
- - Read this at SGinvestors.io -
- We cut FY23F-24F DPUs forecast for Prime US REIT by 12% and 14% by revising fees fully in cash, and tweaking occupancy and financing costs. Our cost of equity or CoE is also adjusted higher by 70bps, factoring in the severe debt crunch in the US commercial market.
Refinancing concerns slightly overblown.
- Read more at SGinvestors.io.
Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2023-05-11
Previous report by RHB:
2023-02-09 Prime US REIT - Waiting For Spring; Maintain BUY.
Price targets by 3 other brokers at Prime US REIT Target Prices.
Listing of research reports at Prime US REIT Analyst Reports.
Relevant links:
Prime US REIT Share Price History,
Prime US REIT Announcements,
Prime US REIT Dividends & Corporate Actions,
Prime US REIT News Articles
