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I think can lease out again later. 12-mths notice really provides a huge runway to find a new tenant. In my properties, it' s just 2-months notice to move-out. And no early-termination penalties summore.
Anyway,... the early-termination penalty is for one-year rent payment. So,... our dpu' s are ' covered' , albeit in an indirect way. If can lease-out again to a new tenant in the next 12 months, and the previous Lease Agmts with the current vacating tenant and with that Wework subsidiary is in our favour, got double-bonus summore in our dividend payout.
Anyway,... the early-termination penalty is for one-year rent payment. So,... our dpu' s are ' covered' , albeit in an indirect way. If can lease-out again to a new tenant in the next 12 months, and the previous Lease Agmts with the current vacating tenant and with that Wework subsidiary is in our favour, got double-bonus summore in our dividend payout.
Singpost ( Date: 10-Nov-2021 11:37) Posted:
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so likely this will risk of drop revenue ,,, that share price drop further
marketuncle ( Date: 10-Nov-2021 09:53) Posted:
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saw this:
https://www.reitsweek.com/2021/11/prime-us-reit-plunges-6-on-married-deal-volume.html
https://www.reitsweek.com/2021/11/prime-us-reit-plunges-6-on-married-deal-volume.html
Got negatives but not news. Maybe just one off departure, the sell down didn' t continue:
" Two pre-terminations announced pre-termination fees likely to cover rents till 4Q22.
https://research.sginvestors.io/2021/11/prime-us-reit-3q21-update-phillip-securities-research-2021-11-08.html
" Two pre-terminations announced pre-termination fees likely to cover rents till 4Q22.
A tenant at One Washingtonian Center pre-terminated its lease, resulting in a 15ppt decline in building occupancy, from 95.6% to 80.6%. Pre-termination fees will cover rents till Nov22, providing upside for Prime US REIT, should the manager be able to lease out the space before pre-termination fees are depleted. WeWork, one of Prime US REIT&rsquo s top 10 tenant contributing 2.5% of CRI, announced the pre-termination of its lease at Tower I at Emeryville.
WeWork&rsquo s security deposits, in the form of cash and other collaterals, will cover rents until 4Q22. More details to follow as Prime US REIT and WeWork are currently discussing the pre-termination fee and date of vacancy.
Separately, a tenant occupying 2.6% of NLA at Reston Square will not be renewing its lease when it comes due in Jul22. The tenant was acquired by another corporate and will be relocating to the acquirer&rsquo s building. In place rents of US$443.46 are currently 14.7% above market rents of US$37.00, implying negative reversions for this space."
https://research.sginvestors.io/2021/11/prime-us-reit-3q21-update-phillip-securities-research-2021-11-08.html
No news is good news. Maybe some big boys just rebalanced their portfolios.
Good opportunity to buy as the yield is more than 8% now. Potential currency gain as well given rising USD.
I loaded more yesterday.
Good opportunity to buy as the yield is more than 8% now. Potential currency gain as well given rising USD.
I loaded more yesterday.
bad news?
asianguy ( Date: 09-Nov-2021 10:39) Posted:
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Some big boys unloaded ? 88M shares traded.
Singpost ( Date: 09-Nov-2021 09:38) Posted:
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what happened
WeWork to close operations at Prime US Reit property in talks over lease obligation
THE manager of Prime US ReitPrime US ReitUSD: OXMU 0% is in discussions with tenant WeWork on the resolution of the latter' s lease obligations at Tower 1 at Emeryville, a Class A office property in California.
The statement comes after the local San Francisco press reported that WeWork will be closing its co-working operation at the building.
WeWork occupies 56,977 square feet (sq ft) of space within the real estate investment trust' s 3.89 million sq ft portfolio, the manager said in a bourse filing on Monday.
The co-working operator also contributes about 2.5 per cent of Prime US Reit' s cash rental income as at June 30.
WeWork previously approached the Reit with a proposal to restructure its lease, the manager said in June.
It added at the time Prime US Reit' s security in relation to that WeWork lease consists of a combination of protections. If the counterparty honours its obligations, such protections will cover the tenant' s monthly lease obligations through as much as end-2022.
In light of the security package, the manager does not expect the lease to have any impact on Prime US Reit' s distribution per unit for the current financial year.
Prime US REIT in talks with WeWork on resolution of its lease obligation in California
The manager of Prime US REIT says it is currently in discussions with a wholly-owned subsidiary of WeWork on the resolution of its lease obligation at Tower 1 at Emeryville.
WeWork currently occupies 56,977 sq ft of space within the REIT&rsquo s 3.89 million sq ft portfolio and contributes 2.5% of its cash rental income as at June 30.
Emeryville is a city located in northwest Alameda Country in California.
The statement, on Sept 13, comes as the local San Francisco press reported that WeWork will be closing its co-working operation at the building.
According to the manager, the REIT is protected under the terms of its contract, which will cover the tenant&rsquo s monthly lease obligations through as far as end-2022.
As at 9.50am, units in Prime US REIT are trading flat at 86 US cents.
Eleven of Singapore' s smaller Reits enter FTSE EPRA Nareit Global Real Estate Index
Eleven of Singapore' s smaller Reits have made it into the FTSE EPRA Nareit Global Real Estate Index series, according to the index series' quarterly review changes announced by FTSE Russell on Sept 1.The entries into the FTSE EPRA Nareit Global Developed Index include AIMS APAC Reit, ARA Logos Logistics Trust, Cromwell European Reit, ESR-Reit, Far East Hospitality Trust, Keppel Pacific Oak US Reit, Lendlease Global Commercial Reit, OUE Commercial Reit, Prime US Reit, SPH Reit and Starhill Global Reit.
FTSE Russell noted that the increased number of additions this quarter was due to the updated thresholds for the Developed Asia series.
In June, the investable market cap threshold was lowered to 0.1 per cent of the securities' respective regional index for additions to the Developed Asia series, compared to 0.3 per cent previously. For deletions from the index series, the threshold was lowered to 0.05 per cent from 0.15 per cent.
The review may be subject to changes until the close of business on Sept 3, and all constituent changes will be applied after the close of business on Sept 17.
The index series, which tracks the performance of listed real estate companies and Reits, is a global benchmark jointly developed by FTSE Russell with the EPRA (European Public Real Estate Association) and the Nareit (National Association of Real Estate Investment Trusts).
Prior to the review, there were 17 Singapore Reits and property trusts in the FTSE EPRA Nareit Developed Index, according to the index' s factsheet as at July 30, 2021.
Prime US REIT (rated " buy" with a target price of US$1.03).
PhillipTan ( Date: 24-Aug-2021 01:41) Posted:
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Suntec REIT, Prime US REIT among RHB' s top picks for office REITs as companies adopt hybrid work model
In an August 23 research note, RHB Group Research reported the results of a June survey carried out to evaluate Covid-19' s impact on the office sectors in Singapore and Malaysia.Based on the survey results, RHB analysts Loong Kok Wen and Vijay Natarajan identified key trends for the office space, namely the potential downsizing of office space by 20-30% as remote work programmes become a norm moving forward, resulting in companies revisiting their office space requirements.
Nonetheless, the analysts note that the accelerating WFH trend will not eliminate the importance of office space. " We believe many companies will still want to retain a physical presence in the city centre or in key business districts in other states," the remark. To that end, they anticipate the adoption of a more formal hybrid model that combines both work from home and office.
In addition, Loong and Natarajan believe decentralisation of regional operations by companies as part of their risk management efforts could support demand for office space. " There may also be some potential positive spillover to co-working spaces, due to the quality and flexibility offered - but the medium- to long-term impact is uncertain, due to the cost differential between office rental and charges by co-working facilities," they add.
In Singapore, the analysts believe international real estate investors will be drawn to the city state as it pursues more sustainable and integrated office developments. To that end, their outlook for the sector remains positive. " As sustainability and mixed developments will be the theme going forward, the country should attract high-profile corporate tenants that will support office rentals over the long term," they note.
They maintain their " overweight" rating for Singapore REITs. " Among all the sub-sectors, the office segment is second-best, preferred next only to the resilient industrial segment," they say.
The way Loong and Natarajan see it, investors should keep their exposure to REITs, or companies that own quality assets, as a long-term sustainable investment strategy. Their top picks for Singapore are Suntec REIT (rated " buy" with a target price of $1.75) and Prime US REIT (rated " buy" with a target price of US$1.03).
" These REITs have ESG scores of 3 and above, based on our proprietary ratings," the analysts add.
As at 3pm, units in Suntec REIT and Prime US REIT are trading at $1.46 and 84 US cents.
Just sold all my 10 lots recently for a profit of 400+
Lol
Lol
lovetravelsg ( Date: 12-Aug-2021 17:16) Posted:
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Bought into this recently. Undervalued stock and reasonable gearing ratio with decent dividend yield.
Anyone else?
Anyone else?
' Buy' Prime US REIT on strong leasing momentum
Analysts from DBS Group Research, Maybank Kim Eng and RHB Group Research have maintained their " buy" calls on Prime US REIT, while PhillipCapital has kept its " accumulate" recommendation on Prime US REIT despite the lower distribution per unit (DPU) reported for the 1HFY2021 ended June.During the period, Prime US REIT saw a 5.4% decline in DPU to 3.3 US cents (4.482 cents) from 3.5 US cents previously due to higher property expenses.
To DBS analysts Rachel Tan and Derek Tan, the REIT is currently trading at an 8% yield and 0.9 times price-to-net asset value (P/NAV) for the FY2021, which they deem as " attractive" as interest rates are still at low levels.
" Prime US REIT was the first among its peers to acquire new assets in FY2021 when the situation started to turn for the better this should provide earnings stability and future growth," write the analysts in an Aug 5 report.
The REIT was also quick and nimble in leverage on its favourable credit metrics to acquire actively, ahead of its peers, despite the disruption caused by Covid-19 soon after its listing.
" We believe investors will increasingly recognise Prime US REIT as it continues to build a strong track record in generating shareholder value," they add.
The analysts at DBS have given a target price of US$1 which is based on a risk-free rate of 2.5% and a beta of 0.95 times. The target price also implies a yield of 6.8% and P/NAV of 1.16 times.
They have also raised their DPU estimates for the FY2021 to FY2022 by 4% to factor in the acquisition of Sorrento Towers and One Town Center.
In addition, they have lowered their occupancy rate estimates per the REIT' s results in the 1HFY2021.
However, they caution that a slower-than-expected economic recovery due to the new waves of Covid-19 infections in the US would impact businesses and may cause a risk of vacancies in its business parks and office buildings.
That said, despite the volatile recovery going into the 2HFY2021, the analysts say they remain " optimistic that Prime US REIT will be able to ride on the return-to-office trend in the US especially with a pick-up in vaccination rates in the US," they write.
Maybank Kim Eng analyst Chua Su Tye has kept his target price of US$1.10.
Like the analysts at DBS, Chua deems the REIT' s valuations as " compelling" with an 8% DPU yield for the FY2021.
Despite the slight decline in DPU for the 1HFY2021, which came in spite of strong leasing, Chua says the REIT' s DPU visibility is high given its weighted average lease expiry (WALE) of 4.1 years, strong tenancies and 2.0% per annum (p.a.) growth from its assets under management (AUM), which is currently under-rented by 6.4%.
" We see catalysts from improving leasing momentum, and upside from acquisitions," writes Chua in an Aug 4 report.
In addition, Prime US REIT compares well against its US office S-REIT peers. This is due to its " low near-term leasing and refinancing risks," he says.
The REIT also has a diversified US portfolio and low concentration risk with 12 properties across nine cities.
" We see upside from acquisition opportunities and as it targets FTSE EPRA NAREIT Index inclusion in the medium term," he adds.
Upside swing factors, according to Chua, are better-than-expected DPUs from estimates, accretive acquisition of new properties, increases in rents, occupancy or property values of its assets.
Conversely, downside risks include spikes in interest rates, value-destroying acquisitions, as well as changes in [the] tax regime that affects its tax-efficient structure.
PhillipCapital analyst Tan Jie Hui has maintained her target price of 94 US cents on the REIT, which translates to distribution yields of 8.1% for the FY2021 for a total potential upside of 22.0%.
The REIT' s DPU stood at 46% of her FY2021 estimates.
She has also lowered her DPU estimates for the FY2021 and FY2022 by 10.5% and 0.7% respectively after accounting for a larger unit base.
" We factor in additional income from its newly acquired properties but lower our rental and occupancy assumptions for FY2021 to capture declines in its carpark income and a softer leasing market," writes Tan in an Aug 5 report.
While physical occupancy for the REIT has increased to 25% to 30% from 15% to 20% in the last 30 days, Tan notes that leasing remains below pre-pandemic levels and that leasing weakness may persist into the 3QFY2021.
" Although Prime has been discussing leasing with prospective tenants especially in Denver and tours of office space increased over 80% from January to May 2021 according to VTS, actual space commitments usually lag leasing decisions by a few months. This means that committed portfolio occupancy can be expected to bottom out only in 4Q this year," she writes.
RHB analyst Vijay Natarajan has, too, kept his target price of US$1.03 as Prime US REIT' s DPU fell below expectations at 48% of his FY2021 estimate.
That said, he notes that office tour activity and leasing momentum in Prime US REIT' s assets are starting to pick up pace with more employees expected to return to the office in the 4QFY2021.
He has, however, cut his net profit estimates for the FY2021 by 2% to accommodate the slightly longer leasing times.
He also estimates that the REIT' s occupancy will bottom out in the FY2021, although rental reversions will remain positive.
Like the previous analysts' observations, Natarajan also notes that " the recent addition of two quality assets has further diversified and strengthened its income profile" .
" The REIT is also expected to be included in the FTSE/EPRA Nareit index in the September review, which should narrow its trading discount vs peers," he adds.
As at 4.27pm, units in Prime US REIT are trading flat at 84 US cents or 0.94 times P/B, with a dividend yield of 8.3% for the FY2021, according to RHB' s estimates.
Prime US Reit H1 DPU down 5.4% on higher expenses
PRIME US Reit, which has a portfolio of office properties in the US, posted a distribution per unit of 3.33 US cents for the six months ended June. This is 5.4 per cent lower than a year ago, which it attributed to its being weighed by higher property expenses, the Reit manager said on Tuesday.
Taking into account the private placement launched on June 24, Prime US Reit announced a cumulative distribution of US 3.42 cents for the period from Jan 1 to July 5.
The Reit' s H1 gross revenue inched up 1.2 per cent to US$72.1 million, boosted by half-year contributions from Park Tower, which was acquired in February last year. However, net property income fell 2.3 per cent to US$46.3 million, weighed by higher property expenses, such as increase in property taxes for 101 South Hanley.
Overall, distributable income stood at US$35.4 million, down 1.3 per cent. The Reit had a gearing of 34.4 per cent as of end-June, while interest coverage was 5.8 times.
Prime US Reit achieved a portfolio occupancy of 91.7 per cent in H1, with a weighted average lease expiry of 4.1 years. Rent collections stood at 99.6 per cent in Q2 this year. That quarter, it executed over 52,000 sq ft of mainly long-term leases, at positive rental reversion of 10.5 per cent.
The Reit signed new leases with financial services and government tenants such as Deloitte, the Commission on State Mandates, EDJ Leasing and FCI Lender Services.
The focus is now on renewing leases and executing new ones to address remaining expiries this year, the Reit manager said in Tuesday' s filing. It added that there is " ample debt headroom" of US$458.5 million and US$200 million of undrawn facilities.
The manager is also optimistic about macroeconomic conditions with " vaccination rates rising and increased consumer activity" . The acquisitions of One Town Center and Sorrento Towers are also expected to contribute positively to portfolio performance in H2.
Barbara Cambon, chief executive of the Reit manager, said: " We believe non-gateway markets will continue to provide superior risk-adjusted returns, and the extension of our presence into key growth markets and sectors presents significant future growth opportunities for us."
She added that Prime US Reit aims for inclusion in the FTSE EPRA NAREIT index.
Prime US Reit H1 DPU down 5.4% on higher expenses
Prime US Reit, which has a portfolio of office properties in the US, posted a distribution per unit of 3.33 US cents for the six months ended June. This is 5.4 per cent lower than a year ago, which it attributed to its being weighed by higher property expenses, the Reit manager said on Tuesday.Taking into account the private placement launched on June 24, Prime US Reit announced a cumulative distribution of US 3.42 cents for the period from Jan 1 to July 5.
The Reit' s H1 gross revenue inched up 1.2 per cent to US$72.1 million, boosted by half-year contributions from Park Tower, which was acquired in February last year. However, net property income fell 2.3 per cent to US$46.3 million, weighed by higher property expenses, such as increase in property taxes for 101 South Hanley.
Overall, distributable income stood at US$35.4 million, down 1.3 per cent. The Reit had a gearing of 34.4 per cent as of end-June, while interest coverage was 5.8 times.
Prime US Reit achieved a portfolio occupancy of 91.7 per cent in H1, with a weighted average lease expiry of 4.1 years. Rent collections stood at 99.6 per cent in Q2 this year. That quarter, it executed over 52,000 sq ft of mainly long-term leases, at positive rental reversion of 10.5 per cent.
The Reit signed new leases with financial services and government tenants such as Deloitte, the Commission on State Mandates, EDJ Leasing and FCI Lender Services.
The focus is now on renewing leases and executing new ones to address remaining expiries this year, the Reit manager said in Tuesday' s filing. It added that there is " ample debt headroom" of US$458.5 million and US$200 million of undrawn facilities.
The manager is also optimistic about macroeconomic conditions with " vaccination rates rising and increased consumer activity" . The acquisitions of One Town Center and Sorrento Towers are also expected to contribute positively to portfolio performance in H2.
Barbara Cambon, chief executive of the Reit manager, said: " We believe non-gateway markets will continue to provide superior risk-adjusted returns, and the extension of our presence into key growth markets and sectors presents significant future growth opportunities for us."
She added that Prime US Reit aims for inclusion in the FTSE EPRA NAREIT index.
Units of Prime US Reit closed flat at US$0.84 on Tuesday.
Prime US Reit
Recently, the manager of Prime, KBS US Prime Property Management, announced the completion of the acquisitions of One Town Center in Boca Raton Florida and Sorrento Towers in San Diego' s Technology Hub, California.
A recent US$80.0 million private placement of Prime units was utilised to partially fund the acquisitions.
More than two times subscribed, the US$80 million private placement launched back on June 24, received strong demand from both existing unitholders and new investors with a good mix of long-only institutional investors, multi-strategy funds, family offices, and private wealth clients.
Institutional investors accounted for over half the demand and final allocations, accompanied by strong private wealth and family office interest.
The acquisitions have expanded the geographical footprint of Prime in new and existing markets within the United States, with no single market contributing more than 11.7 per cent, while extending the portfolio weighted average lease expiry and creating yield accretion.
This has followed on from a distribution reinvestment plan established for Prime on June 21.
After listing in July 2019, Prime made its first asset acquisition in February 2020 of Park Tower for US$165.5 million, which was also partly funded by a private placement.
At the recent AGM, the manager maintained that Prime is well positioned to pursue quality acquisitions this year, and would like to target AUM growth of 20 per cent per annum in a normal operating environment.
KBS US Prime Property Management will release the H1FY21 (ended June 30) financial results for Prime after the market close on Aug 3.
KBS US Prime Property Management chairman and non-executive director Charles J Schreiber Jr, maintains a 1.06 per cent deemed interest in Prime.
Anyone received the Distribution Reinvestment Plan Letter? shallwe choose Option 1 or Option 2? or just cash out with the loose?
PhillipTan ( Date: 07-Jul-2021 09:31) Posted:
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