Prime US REIT - DBS Research 2024-02-16: Potential Domino Effect; Downgrade To FULLY VALUED

• 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
  1. stronger signs of a recovery in the US office market,
  2. the Fed pausing/cutting interest rates, and
  3. 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.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2026-02-16 Prime US REIT - From Darkness To Dawn.

Previous report by DBS:
2025-11-03 Prime US REIT - From Darkness To Dawn.

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 Dividend Payout Dates & Corporate Actions,
Prime US REIT News