- Prime US REIT is closing in on several leasing discussions, which could improve portfolio occupancy by end-23. We estimate fair value of investment properties to drop 10% and aggregate leverage to hit 49% at end-23.
- - Read this at SGinvestors.io -
- Valuation is attractive with Prime US REIT's 2024 distribution yield at 17.1% and P/NAV at 0.43x. Maintain BUY.
Prime US REIT's 1H23 Results
- Prime US REIT (SGX:OXMU) reported 1H23 DPU of US$0.0246 (-30.1% y-o-y), which is lower than our expectations.
Portfolio occupancy slipped but physical occupancy rose.
- - Read this at SGinvestors.io -
- Operating expenses (utilities, HVAC and security) increased 4.2% y-o-y in 1H23 due to higher physical occupancy with more tenants returning to office. Physical occupancy across Prime US REIT’s portfolio improved 2ppt q-o-q to 58% in 2Q23.
Sustaining positive rental reversion.
- Read more at SGinvestors.io.
