Prime US REIT (OXMU) AI Stock Analysis

• Market Cap: $287.49M
• Dividend Yield: 2.4%
• Average Volume (3M): 4.66M
• Price to Earnings (P/E): 95.2
• Beta (1Y): 1.09
• Revenue Growth: -12.01%
• EPS Growth: N/A
• Country: SG
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): <0.01
• Shares Outstanding: 1,437,458,100
• 10 Day Avg. Volume: 3,942,060
• 30 Day Avg. Volume: 4,661,596
• PEG Ratio: -0.26
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 1.69
• P/FCF Ratio: 6.58
• Enterprise Value/Market Cap: 2.87
• Enterprise Value/Revenue: 6.12
• Enterprise Value/Gross Profit: 12.18
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.33
• Price Target Upside: 65.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $0.20 ▲(2.00% Upside)

The overall stock score is primarily influenced by the challenging financial performance, with declining revenues and profitability being significant concerns. While technical analysis shows positive momentum, the high P/E ratio suggests overvaluation, which could deter investors. The lack of earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Debt Repayment Strategy

The strategic allocation of private placement proceeds towards debt repayment strengthens the company's financial position and reduces leverage, enhancing long-term financial stability.

Stable Balance Sheet

A stable balance sheet with moderate leverage suggests a solid asset base and financial prudence, providing a foundation for sustainable operations and growth.

Cash Generation Ability

Strong cash generation relative to net income indicates efficient operations and the ability to fund ongoing business needs and growth initiatives.

Negative Factors

Declining Revenue Growth

Negative revenue growth reflects challenges in market demand or competitive positioning, potentially impacting long-term profitability and market share.

Profitability Challenges

Decreasing profit margins suggest reduced pricing power or increased costs, which could hinder the company's ability to generate sustainable profits over time.

Free Cash Flow Decline

Declining free cash flow growth indicates potential liquidity issues, limiting the company's ability to invest in growth opportunities or weather economic downturns.

Prime US REIT Business Overview & Revenue Model

Company Description

Prime US REIT ("PRIME") is a diversified Singapore real estate investment trust ("REIT") with a focus on stabilised income-producing office assets in the United States ("U.S."). PRIME offers investors a unique exposure to a high-quality portfolio of 12 prime and freehold office properties, strategically located in ten primary markets in the U.S., with a total appraised value of US$1.42 billion. With a geographically diversified portfolio of strategically-located prime office assets in key U.S. office markets, PRIME is well-positioned to achieve its key objectives to provide Unitholders with regular and stable distributions through long-term growth in distributions per unit and net asset value per unit growth while maintaining an appropriate capital structure.

How the Company Makes Money

Prime US REIT generates revenue primarily through rental income from its portfolio of commercial properties. The company leases its spaces to a variety of tenants, including businesses in the office, retail, and industrial sectors, which pay rent on a monthly or annual basis. Additionally, Prime US REIT may earn income through property management fees for overseeing the operations of its properties and from ancillary services provided to tenants. The company may also benefit from capital appreciation of its properties over time, contributing to its overall financial performance. Strategic partnerships with real estate firms and local market experts further enhance its ability to identify lucrative investment opportunities and optimize property performance, ultimately driving revenue growth.

Prime US REIT Financial Statement Overview

Summary

Prime US REIT faces a challenging financial landscape with declining revenues and profitability. While the balance sheet remains stable with moderate leverage, the income statement and cash flow metrics indicate potential areas of concern. The company needs to address revenue growth and profitability to improve its financial health.

Income Statement

Prime US REIT's income statement reflects a challenging environment with declining revenue and profit margins. The revenue growth rate has been negative, indicating a contraction in business. Gross profit margin has decreased over the years, and net profit margin remains low, though it has improved from a significant loss in the previous year. The EBIT and EBITDA margins have also declined, suggesting reduced operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. However, the return on equity is low, reflecting limited profitability from shareholders' investments. The equity ratio is stable, suggesting a solid asset base relative to equity. Overall, the balance sheet is stable but lacks strong profitability metrics.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, indicating potential liquidity issues. The operating cash flow to net income ratio is strong, suggesting good cash generation relative to net income. However, the free cash flow to net income ratio has decreased, highlighting challenges in maintaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	134.79M	132.37M	159.89M	163.01M	156.74M	143.56M
Gross Profit	67.75M	62.96M	87.02M	90.06M	92.98M	87.01M
EBITDA	0.00	41.04M	73.52M	87.24M	90.93M	85.40M
Net Income	2.71M	8.05M	-115.84M	-26.92M	68.19M	23.21M
Balance Sheet
Total Assets	1.42B	1.39B	1.44B	1.59B	1.67B	1.45B
Cash, Cash Equivalents and Short-Term Investments	37.03M	27.48M	11.76M	11.58M	13.87M	37.44M
Total Debt	651.78M	637.27M	696.55M	665.57M	628.97M	480.35M
Total Liabilities	698.18M	678.32M	730.46M	695.26M	681.85M	539.06M
Stockholders Equity	722.91M	716.38M	713.65M	893.79M	991.08M	907.79M
Cash Flow
Free Cash Flow	68.08M	33.99M	61.20M	59.69M	79.59M	78.12M
Operating Cash Flow	68.08M	72.19M	85.63M	89.18M	95.69M	89.85M
Investing Cash Flow	38.62M	37.85M	-24.34M	-30.11M	-260.36M	-175.92M
Financing Cash Flow	-110.49M	-94.31M	-61.12M	-61.34M	141.14M	85.58M

Prime US REIT Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:OXMU, the sentiment is Neutral. The current price of 0.2 is equal to the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.20, and above the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.17 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:OXMU.

Prime US REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MXNU	70 Neutral	£222.75M	14.20	6.30%	8.36%	-9.87%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ODBU	64 Neutral	$314.84M	11.06	6.49%	8.23%	-1.34%	-6.08%
OXMU	57 Neutral	$287.49M	95.24	0.38%	2.40%	-12.01%	―
XZL	53 Neutral	$147.93M	-6.49	-5.62%	5.06%	-6.01%	-36.46%
CMOU	51 Neutral	$245.45M	-15.77	-2.12%	―	-1.55%	78.22%
BTOU	46 Neutral	$129.69M	-0.55	-48.17%	―	-27.66%	-106.71%

Prime US REIT Corporate Events

Prime US REIT Issues Qualified Notice on U.S. Withholding Tax Exception for Unit Transfers

Prime US REIT has issued a Qualified Notice under U.S. Treasury regulations confirming that, for transfers of its interests between 1 January and 31 March 2026, it qualifies for an exception from certain withholding tax rules applicable to publicly traded partnerships. The REIT certifies that it was not engaged in a U.S. trade or business during the relevant period, meaning that eligible transfers of its units within the designated 90-day window should not be subject to the specific withholding obligations under Treas. Reg. § 1.1446(f), providing clearer tax treatment and potentially smoother trading for investors dealing in its units.

The most recent analyst rating on (SG:OXMU) stock is a Buy with a $0.35 price target. To see the full list of analyst forecasts on Prime US REIT stock, see the SG:OXMU Stock Forecast page.