Prime US REIT - RHB Invest 2024-08-14: Delivering On Strategies; BUY

• Prime US REIT (SGX:OXMU)’s 1H24 results were in line. Operationally, the REIT had a commendable year so far, delivering on its two key priorities of loan refinancing and deleveraging via asset sale.
• - Read this at SGinvestors.io -
• Prime US REIT's share price has surged 40% over the last month but is still trading at 0.3x P/B and we see further room for recovery with a rate cut on the cards.

Successfully refinanced US$550m loans

• Successfully refinanced US$550m loans, comprising a US$400m term loan and a US$150m revolving credit – removing a key overhang for Prime US REIT. The loans will be extended for an initial term of two years (until July 2026), with an additional one-year extension option, leaving it with no refinancing needs until mid-2027.
• - Read this at SGinvestors.io -
• Post refinancing, we expect overall borrowing cost at ~5% for FY24F and ~5.5% for FY25F.

Portfolio occupancy (2Q) of 83.9%

• Read more at SGinvestors.io.

Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2024-08-14 SGinvestors.io

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