Prime US REIT - RHB Invest 2023-05-11: Focusing On Operations

Prime US REIT - Focusing On Operations

Prime US REIT (SGX:OXMU) | SGinvestors.ioPrime US REIT (SGX:OXMU)
  • 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 -
  • 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 -
  • 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.

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Vijay Natarajan RHB Securities Research | 2023-05-11

Read also RHB's most recent report:
2024-05-21 Prime US REIT - Clearing The First Major Hurdle; BUY.

Previous report by RHB:
2024-02-23 Prime US REIT - Awaiting Successful Loan Refinancing; BUY.

Price targets by 2 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


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