Prime US REIT - Phillip Securities 2024-02-26: No Breach, But Refinancing Risks Persist

• Prime US REIT (SGX:OXMU)'s FY23 DPU of US$0.0271 (-58.6% y-o-y) was below our estimates due to Prime paying only US$0.0025 in 2H23 (~10% of 2H23 distribution) to preserve capital for capex needs. Assuming a 100% payout ratio, FY23 DPU of US$0.0486 would have aligned with our FY23e forecast at 99%.
• - Read this at SGinvestors.io -
• The y-o-y decline in FY23 distributable income (-25%) was due to Prime US REIT increasing management fees paid in cash from 20% to 100%, higher interest expense, and lower portfolio occupancy. Excluding the change in management fees paid in cash, distributable income is down 18.9% y-o-y.
• - Read this at SGinvestors.io -
• Maintain BUY, DDM-based Prime US REIT's target price lowered from US$0.37 to US$0.30 as we roll over our forecasts.

The Positive

Leasing activities picked up in 4Q23.

• Read more at SGinvestors.io.

Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.

Read also Phillip's most recent report:
2025-05-15 Prime US REIT - Laying The Groundwork For Future Growth.

Previous report by Phillip:
2025-02-25 Prime US REIT - Unexpected Rise In Portfolio Valuations.

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 Dividend Payout Dates & Corporate Actions,
Prime US REIT News