Darren Chan, an analyst from Phillip Securities, maintained the Buy rating on Prime US REIT. The associated price target remains the same with $0.30.
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Darren Chan has given his Buy rating due to a combination of factors that suggest a positive outlook for Prime US REIT. The REIT is on a path to recovery, with portfolio occupancy increasing from 80.2% to 80.7% quarter-on-quarter and expected to reach approximately 85% by the end of the year. This growth is supported by the anticipated signing of large leases totaling over 150,000 square feet.
Additionally, Prime US REIT’s strong liquidity position, with a US$98 million debt headroom and US$58 million in committed undrawn credit facilities, allows it to pursue larger tenants that require significant capital expenditure and incentives. The REIT’s current share price offers an attractive entry point, trading at a steep discount of 0.37x P/NAV, with potential for dividend growth. The payout ratio is expected to increase to at least 50% of distributable income from the second half of 2025 onwards, enhancing income visibility and cash flow contributions from new leases.
According to TipRanks, Chan is a 4-star analyst with an average return of 9.8% and a 71.43% success rate. Chan covers the Real Estate sector, focusing on stocks such as Prime US REIT, CapitaLand Investment Limited, and City Developments.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a $0.35 price target.