- We downgrade our rating for Prime US REIT (SGX:OXMU) to FULLY VALUED from HOLD previously and lower our Prime US REIT's target price to US$0.07 from US$0.18.
- - Read this at SGinvestors.io -
- We pegged our target price to 0.11x P/NAV assuming Prime US REIT's NAV could decline by another 15%.
Pre-emptive stance, prior to Prime US REIT's earnings release
- We are taking a pre-emptive stance, prior to Prime US REIT releasing its results (see earnings calendar), on a potential domino impact from Keppel Pacific Oak US REIT (SGX:CMOU)’s recent actions to suspend distributions for better capital management. See report: Keppel Pacific Oak US REIT - Down The Same Path.
- - Read this at SGinvestors.io -
- We continue to watch for re-rating catalysts, such as
- stronger signs of a recovery in the US office market,
- the Fed pausing/cutting interest rates, and
- an improvement in macroeconomic sentiment/outlook.
Investment Thesis:
Positioned for return-to-office trends in the US, albeit with a rocky recovery.
- Read more at SGinvestors.io.
