- Downgrade Prime US REIT (SGX:OXMU) from BUY to ACCUMULATE with a lower target price of US$0.12 from US$0.30. We are pricing in the refinancing risk by changing our valuation from DDM to P/NAV that is in-line with US office peers. We believe this is warranted due to the short two-month window to refinance the debt.
- - Read this at SGinvestors.io -
- Assuming a 25% payout ratio, the current Prime US REIT share price implies an FY24e DPU yield of 9.5%.
The Positive
Leasing volume more than doubled y-o-y.
- - Read this at SGinvestors.io -
- Management indicated strong leasing momentum at some of its properties, with notable leasing discussions underway at One Washingtonian Center (OWC), Park Tower, and 101 Hanley, albeit with relatively longer lead times.
The Negatives
Two months left to refinance US$480mil or 69% of total debt due July 2024.
- 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/ 2024-05-13
Previous report by Phillip:
2024-02-26 Prime US REIT - No Breach, But Refinancing Risks Persist.
Price targets by 2 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
