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With healthy assets and debt headroom, pessimism on Prime US REIT 'likely overdone': analysts

Jovi Ho
Jovi Ho8/11/2022 09:54 AM GMT+08  • 3 min read
With healthy assets and debt headroom, pessimism on Prime US REIT 'likely overdone': analysts
“Prime compares well with its US office S-REIT peers, as it has low near-term leasing and refinancing risks.” Photo: Prime US REIT
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With strong rental reversion and more than 9% yield, market pessimism on US office-focused Prime US REIT is “likely overdone”, say analysts.

RHB Group Research analyst Vijay Natarajan is mtaining "buy” on Prime with a lower target price of US$1 ($1.37) from US$1.02 previously. The new target price represents a 39% upside.

Prime US REIT holds a portfolio of 14 US office properties worth US$1.7 billion. On Aug 3, the REIT reported a distribution per unit of 3.52 cents for 1HFY2022 ended June, up 5.7% y-o-y. Net property income in the same period was US$50.8 million, up 9.7% y-o-y; while revenue was up 13.5% y-o-y to US$81.8 million.

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