Prime US REIT - UOB Kay Hian 2024-07-16: On The Verge Of Completing Refinancing

• Prime US REIT is on the verge of completing its refinancing, with three lenders in its syndicate of four banks in the final stage of legal documentation.
• Prime US REIT's share price trades at a depressed P/NAV of 0.22x, which already reflects a prolonged downturn in the US office market.
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Closed to finalising refinancing.

• Prime US REIT (SGX:OXMU) is working with a syndicate of four banks on the refinancing for its credit facilities of US$600m. Three lenders are in the final stage of legal documentation. One lender has requested additional time to finalise internal documentation.
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Deleveraging through divestment.

• Prime US REIT has completed the divestment of One Town Center in Boca Raton, Florida for US$82m on 10 Jul 24 (3.3% below valuation of US$84.8m). We view the selling price as attractive given the current dire outlook for the office market.
• The divestment proceeds will be utilised to pare down debts and fund capex required to drive new leasing activities. Aggregate leverage is expected to decline from 48.4% to 45.8% assuming proceeds are fully utilised to repay debts.

Maintaining strong leasing momentum

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Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-07-15 SGinvestors.io

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