- Prime US REIT (SGX:OXMU)'s 3Q23 distributable income of US$14.7mil (-23.4% y-o-y) was in line with our expectations and formed 25% of our FY23e forecast.
- The y-o-y decline was due to Prime increasing management fees paid in cash from 20% to 100%, higher interest expense, lower portfolio occupancy, and absence of lease termination income (US$1.3mil recorded in 3Q22). Excluding the change in management fees paid in cash, distributable income is down 16.6% y-o-y.
- - Read this at SGinvestors.io -
- Maintain BUY, DDM-based target price for Prime US REIT lowered from US$0.39 to US$0.37. FY24e DPU forecast for Prime US REIT is lowered by 7% on lower occupancy and higher finance costs assumptions.
The Positive
Leasing activities picked up in 3Q23.
- - Read this at SGinvestors.io -
- Management indicated strong leasing momentum at some of its properties, with notable leasing discussions underway at VCS I and Park Tower, albeit with relatively longer lead times.
- One of its top 10 tenants, Matheson Tri-Gas, has indicated interest to expand its space at Tower 909, and discussions are ongoing.
The Negatives
Portfolio occupancy dipped from 85.6% to 85% q-o-q.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Darren Chan Phillip Securities Research | https://www.stocksbnb.com/ 2023-11-09
Previous report by Phillip:
2023-08-14 Prime US REIT - Navigating Through The Storm.
Price targets by 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
