Analyst Darren Chan of Phillip Securities maintained a Buy rating on Prime US REIT, with a price target of $0.21.
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Darren Chan has given his Buy rating due to a combination of factors that indicate a positive outlook for Prime US REIT. The REIT has shown strong leasing momentum, with significant leases signed in recent quarters, which has led to an increase in portfolio occupancy. This leasing activity is supported by a flight-to-quality trend and a return-to-office movement, suggesting that the demand for high-quality office spaces is on the rise.
Additionally, the REIT’s financial position is robust, with no refinancing requirements in FY25 and a substantial debt headroom, allowing it to target larger tenants. The REIT is also trading at a significant discount to its net asset value, which presents an attractive investment opportunity. Furthermore, the positive rental reversions achieved indicate that the REIT is not compromising on rental rates, reinforcing the strength of its asset quality. These factors, combined with a favorable cost of equity adjustment, underpin the Buy rating.