Analyst Darren Chan from Phillip Securities maintained a Buy rating on Prime US REIT (OXMU – Research Report) and keeping the price target at $0.20.
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Darren Chan has given his Buy rating due to a combination of factors that highlight the potential for future growth and stability in Prime US REIT. The REIT’s leasing momentum is strong, with significant lease agreements expected to boost portfolio occupancy to approximately 85% by the end of 2025. This increase in occupancy, along with the absence of refinancing requirements for the year, positions the REIT well for improved financial performance.
Additionally, Prime US REIT’s robust balance sheet, characterized by a leverage ratio of 46.8% and substantial debt headroom, supports its ability to attract larger tenants and manage capital expenditures effectively. The REIT’s strategic focus on long-term leases is expected to enhance its weighted average lease expiry (WALE). Despite broader market uncertainties, Prime US REIT’s high-quality assets and strategic initiatives are poised to deliver a favorable distribution yield, making it an attractive investment opportunity.
According to TipRanks, Chan is a 3-star analyst with an average return of 3.0% and a 57.45% success rate. Chan covers the Real Estate sector, focusing on stocks such as Ascott Residence, City Developments, and Frasers Centrepoint.