Prime US REIT - RHB Invest 2024-02-23: Awaiting Successful Loan Refinancing; BUY

• While Prime US REIT (SGX:OXMU)’s underlying distributable income for 2H23 slightly exceeded expectations, ~90% of it will be retained for capex and liquidity management. Prime US REIT also announced a surprise 1-for-10 bonus unit issue to reward shareholders.
• - Read this at SGinvestors.io -
• Next key catalyst/risk will be the successful refinancing of a US$600m loan in 2H24, on which constructive discussions are ongoing.

Portfolio valuation fell 8.7% y-o-y

• Prime US REIT's portfolio valuation fell 8.7% y-o-y, in line with expectations. Major declines came from One Washingtonian Centre (-36%), Sorrento Towers (-15.8%), and 222 Main (-11.3%).
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• Prime US REIT targets to execute up to US$100m of asset deleveraging in 2024, which – while challenging – could significantly tone down balance sheet concerns. It also has withheld US$25.6m of 2H23 income which will be used for capex and debt repayment.

All eyes on upcoming refinancing of US$600m in loans

• Read more at SGinvestors.io.

Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-02-23 SGinvestors.io

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