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Prime US ReitUSD Last:0.16 -

Prime US Reit SGX debut 19 JUL 2019

Thanks for sharing
Too bad, I already own 110,000 @ average cost 22.54c
Bought into the higher yield and hoping Prime can ride out the current environment and then I can have a small holdings with high yield for permanent long term portfolio
Anyway, bought small small, not buying more too

marketuncle ( Date: 24-Aug-2023 11:17) Posted:

Say until PRIME is not far from MUST.
https://secure.fundsupermart.com/fsmone/article/rcms277040

SSHs, Temasek and Keppel no knock CEO of Prime ?

Ironically, if Prime falls lower, might not be a bad thing.
It could finally attract/trigger (similar business) buyer to come in and take over on the cheap (we' e talking about grade-A office buildings mainly in sun-belt cities which are relatively resilient). It' s a matter of at what level they deem as too cheap to take action.
There are only a handful of players in Sngapore that invest in US Office REIT, their board members have similar company background. It' s a small circle.
(caveat: I recently started investing in this. It' s a high-risk counter, pls apply your own analysis & judgement)

Prime US REIT may be unnecessarily feeling the heat from the negative headlines surrounding one its peers, and the US office market in general.

This was the assessment provided by Harmeet Singh Bedi, CEO of the REIT&rsquo s manager, during a recent event with investors.

Prime US REIT is one of three Singapore Exchange (SGX)-listed REITs that exclusively own US office assets.

For its 1H 2023 results, the REIT reported gross revenue of USD79.5 million and net property income (NPI) of USD47.2 million, 2.9% and 7.2% lower year-on-year respectively.

wow still up ..ex div 2.46..

superstartup ( Date: 14-Aug-2023 13:34) Posted:

Ex Div 16 Aug 2023
USD 2.46c (for 1H 2023)
Current share price 0.189
Annualised yield, cum Dividend 26%
Annualised yield, ex Dividend 30% (theoretical)

superstartup ( Date: 14-Aug-2023 12:56) Posted:

from PhillipsCapital
14 Aug 2023

Prime US REIT Navigating through the storm

SINGAPORE | REAL ESTATE | 1H23 Results

- 1H23 DPU of 2.46 US cts (-30.1% YoY) was in line with our estimates at 50% of FY23e forecast. The decline of was due to Prime increasing management fees paid in cash from 20% to 100%, higher interest expense, lower occupancy, and higher operating expenses. Excluding the change in management fees paid in cash, DPU is still down c.24% YoY.
- Portfolio occupancy dropped to 85.6% from 88.6% in 1Q23, with overall rental reversions of +9.5%.
- Maintain BUY, DDM-TP lowered from US$0.46 to US$0.39. Our cost of equity increased from 13.75% to 15.95% due to the inherent weakness of the US office sector. Catalysts include improved leasing and a greater return to the office. Prime is currently trading at 0.25x P/NAV, and we believe that most of the negatives are already priced in. The current share price implies FY23e/FY24e DPU yield of 25/27%.

from UOB KH
11 Aug 2023

Prime US REIT (PRIME SP) 1H23:

Valuation is attractive with 2024 distribution yield at 17.1% and P/NAV at 0.43x. Maintain BUY. Target price: US$0.59.
(previous Target Price USD $0.61)

superstartup ( Date: 14-Aug-2023 13:20) Posted:

Now wait for RHB and UOB revised target price
Will be lower, but think will still be much much higher than current share price

Ex Div 16 Aug 2023
USD 2.46c (for 1H 2023)
Current share price 0.189
Annualised yield, cum Dividend 26%
Annualised yield, ex Dividend 30% (theoretical)

superstartup ( Date: 14-Aug-2023 12:56) Posted:

from PhillipsCapital
14 Aug 2023

Prime US REIT Navigating through the storm

SINGAPORE | REAL ESTATE | 1H23 Results

- 1H23 DPU of 2.46 US cts (-30.1% YoY) was in line with our estimates at 50% of FY23e forecast. The decline of was due to Prime increasing management fees paid in cash from 20% to 100%, higher interest expense, lower occupancy, and higher operating expenses. Excluding the change in management fees paid in cash, DPU is still down c.24% YoY.
- Portfolio occupancy dropped to 85.6% from 88.6% in 1Q23, with overall rental reversions of +9.5%.
- Maintain BUY, DDM-TP lowered from US$0.46 to US$0.39. Our cost of equity increased from 13.75% to 15.95% due to the inherent weakness of the US office sector. Catalysts include improved leasing and a greater return to the office. Prime is currently trading at 0.25x P/NAV, and we believe that most of the negatives are already priced in. The current share price implies FY23e/FY24e DPU yield of 25/27%.

Now wait for RHB and UOB revised target price
Will be lower, but think will still be much much higher than current share price

Market down so much

from PhillipsCapital
14 Aug 2023

Prime US REIT Navigating through the storm

SINGAPORE | REAL ESTATE | 1H23 Results

- 1H23 DPU of 2.46 US cts (-30.1% YoY) was in line with our estimates at 50% of FY23e forecast. The decline of was due to Prime increasing management fees paid in cash from 20% to 100%, higher interest expense, lower occupancy, and higher operating expenses. Excluding the change in management fees paid in cash, DPU is still down c.24% YoY.
- Portfolio occupancy dropped to 85.6% from 88.6% in 1Q23, with overall rental reversions of +9.5%.
- Maintain BUY, DDM-TP lowered from US$0.46 to US$0.39. Our cost of equity increased from 13.75% to 15.95% due to the inherent weakness of the US office sector. Catalysts include improved leasing and a greater return to the office. Prime is currently trading at 0.25x P/NAV, and we believe that most of the negatives are already priced in. The current share price implies FY23e/FY24e DPU yield of 25/27%.

At current price.. its time to accumulate.. so I disagree with DBS' s report on Prime.

I have been watching PRIME hitting 0.4 rebounded to 0.52 and all the way down to near 0.22 before I fire the 1st shot.. followed by avg in again at 0.18 and continue to add more below 0.2 after seeing the last result report.

All i can say is, this is the best time to add more.. at current distress pricing. Save another 30% up to add more if it drops further. Risk is definately there as 42.8% gearing at high interest rate period & dropping property value are still in the works.

asianguy ( Date: 11-Aug-2023 16:58) Posted:

Never trust DBS report on this. You would be getting into this shit today at USD 0.18 if u had followed their last 3 reports to buy.
Maybe now is the best time to buy in or average down at this low USD 0.18, with annual dividend of USD 0.05.

S.No. Date of Report Closing Price 12-mth Target Price Rating
1: 10 Nov 22 0.47 0.65 BUY
2: 09 Feb 23 0.49 0.63 BUY
3: 11 May 23 0.21 0.33 BUY

Joelton ( Date: 11-Aug-2023 11:43) Posted:

DBS downgrades Prime US Reit to &lsquo hold&rsquo on occupancy, gearing concerns

DBS Group Research on Thursday (Aug 10) downgraded Prime US Reit : OXMU +4.26% to &ldquo hold&rdquo from &ldquo buy&rdquo while cutting its target price by 45 per cent to US$0.18 from US$0.33.

The new target price, which takes into account potential further declines in net asset value (NAV), comes amid concerns over the real estate investment trust&rsquo s (Reit) high gearing and its declining occupancy.

Prime US Reit&rsquo s gearing level stood at 42.8 per cent as at Jun 30, 2023, with S$231.6 million in debt headroom to the leverage limit of 50 per cent, based on financial results released on Tuesday.

The research team believes that there is also a limited buffer before the Reit&rsquo s gearing hits the 45 per cent level. It is worried that a buffer accounting for only a 5 per cent decline in asset valuation before gearing reaches the 45 per cent level is &ldquo insufficient to comfort investors&rdquo .

Although the Reit&rsquo s extension of debt expiry by one year to 2024 gives it more time to &ldquo ride out the interest rate hike cycle&rdquo , refinancing risks could remain in the same year if the credit crunch goes on longer than expected, particularly in the US office sector.

Any deterioration in portfolio occupancy will also elevate potential risks to the asset valuation, DBS said. It noted that occupancy seems to be on a declining trend, which could weigh on portfolio performance if &ldquo backfilling&rdquo takes longer than expected.

The Reit&rsquo s leased occupancy stood at 85.6 per cent as at end June, with a weighted average lease expiry of 3.9 years. Leasing at four of its assets rose during the year, with gradual increases in physical occupancy as several large employers issue re-entry guidelines.

&ldquo We remain hopeful that green shoots of increasing leasing discussions could see a turnaround in the US office outlook,&rdquo said DBS analysts Rachel Tan and Derek Tan.

Their target price assumes a price-to-NAV ratio of 0.3 times, assuming NAV declines by another 10 per cent. It also implies a downside of about 9.4 per cent from Prime US Reit&rsquo s last trading price of S$0.197 as at 3.39 pm. Its units were trading 4.8 per cent or S$0.009 higher at the time.

On Aug 8, Prime US Reit posted a 30.1 per cent fall in distribution per unit to US$0.0246 for the first half ended Jun 30, from US$0.0352 in the same period last year. Revenue, meanwhile was down 2.9 per cent to US$79.6 million, while net property income slipped 7.2 per cent to S$47.2 million.

Because haven't XD

checkmate ( Date: 14-Aug-2023 10:18) Posted:

Surprisingly resilient amongs the US Office REIT selldown.