Prime US REIT (OXMU) AI Stock Analysis

• Market Cap: $185.77M
• Dividend Yield: 2.02%
• Average Volume (3M): 1.08M
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.20
• Revenue Growth: -11.42%
• EPS Growth: N/A
• Country: SG
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 60
• Industry: REIT - Office
• EPS (TTM): <0.01
• Shares Outstanding: 1,308,259,200
• 10 Day Avg. Volume: 855,540
• 30 Day Avg. Volume: 1,083,510
• PEG Ratio: 0.54
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.21
• Enterprise Value/Market Cap: 4.28
• Enterprise Value/Revenue: 1.26
• Enterprise Value/Gross Profit: 9.80
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.20
• Price Target Upside: 42.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: $0.00 ▼(-100.00%Downside)

Prime US REIT's overall stock score reflects financial performance challenges, particularly in revenue growth and profitability. Technical analysis indicates bearish trends, while valuation metrics suggest the stock is fairly valued but not attractive. Improving operational efficiency and profitability are crucial for enhancing the stock's outlook.

Positive Factors

Financial Position

Prime's strong balance sheet supports leasing efforts, with US$91mn in debt headroom backed by committed undrawn facilities.

Leasing Activity

Leases signed in 1Q25 achieved a positive rental reversion of 2.6% with expectations to lift portfolio occupancy towards c.85% by end-2025.

Market Trends

Prime is well-positioned to benefit from the trend of more employers mandating return-to-office five days a week and the improving leasing momentum.

Negative Factors

Finance Costs

Higher finance costs expected in FY25e, with the all-in cost of debt anticipated to rise to 5.5%.

Financial Performance

Distributable Income declined significantly due to higher finance expenses and capital expenditure.

Recovery Timeline

Recovery will likely take time despite being positioned for return-to-office trends.

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 leasing office spaces to a diverse range of tenants, including multinational corporations, government agencies, and other businesses. The company's income is largely derived from rental payments made by these tenants, which are typically secured through long-term lease agreements. Prime US REIT benefits from its strategic property locations, which attract high occupancy rates and enable competitive rental pricing. Additionally, the company may engage in strategic property acquisitions and asset enhancements to boost revenue and value creation. Significant partnerships with property managers and brokers can enhance the operational efficiency and occupancy levels of its properties, further contributing to its earnings.

Prime US REIT Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
153.82M	132.37M	159.89M	154.50M	144.74M	136.21M
	Gross Profit
81.18M	62.96M	87.02M	89.22M	88.50M	87.45M
	EBIT
78.95M	69.32M	73.52M	-58.63M	71.87M	55.06M
	EBITDA
0.00	41.04M	73.52M	-21.35M	88.02M	55.06M
	Net Income Common Stockholders
-130.10M	8.05M	-115.84M	-26.92M	68.19M	23.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.50M	27.48M	11.76M	11.58M	13.87M	37.44M
	Total Assets
1.60B	1.39B	1.44B	1.59B	1.67B	1.45B
	Total Debt
683.47M	637.27M	696.55M	665.57M	628.97M	480.35M
	Net Debt
667.97M	609.78M	684.79M	653.99M	615.10M	442.91M
	Total Liabilities
716.79M	678.32M	730.46M	695.26M	681.85M	539.06M
	Stockholders Equity
885.92M	716.38M	713.65M	893.79M	991.08M	907.79M
Cash Flow		Free Cash Flow
78.86M	33.99M	61.20M	59.69M	79.59M	78.12M
	Operating Cash Flow
78.86M	72.19M	85.63M	89.18M	95.69M	89.85M
	Investing Cash Flow
-32.04M	37.85M	-24.34M	-30.11M	-260.36M	-175.92M
	Financing Cash Flow
-21.53M	-94.31M	-61.12M	-61.34M	141.14M	85.58M

Prime US REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.14, and below the 200-day MA of 0.16, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.87 is Neutral, neither overbought nor oversold. The STOCH value of 78.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:OXMU.

Prime US REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ODBU	74 Outperform	$262.62M	8.59	6.86%	9.23%	1.37%	-10.66%
Sector *	61 Neutral	$2.83B	10.98	0.41%	8438.90%	5.81%	-21.06%
UD1U	56 Neutral	S$396.73M	31.72	1.60%	9.29%	16.79%	―
CMOU	55 Neutral	$197.40M	―	-0.96%	24.56%	-2.52%	89.81%
OXMU	52 Neutral	$185.77M	23.28	1.13%	2.02%	-11.42%	―
XZL		$179.83M	―	-5.56%	5.10%	―	―
BTOU	47 Neutral	$113.70M	―	-34.26%	―	-19.44%	53.13%

Prime US REIT Corporate Events

Prime US REIT Removed from Mandatory Quarterly Reporting List

Prime US REIT has been removed from the mandatory quarterly reporting list by the Singapore Exchange due to an unmodified and unqualified audit opinion on its financial statements for the year ending December 2024. This change follows the completion of a US$550 million credit facility, improving the REIT’s financial position and removing previous concerns about its ability to continue as a going concern.

Prime US REIT Receives Clean Audit for FY2024

Prime US REIT Management Pte. Ltd. announced that the independent auditor’s report for the financial year ending December 31, 2024, issued by Ernst & Young LLP, has expressed a clean audit opinion on the company’s financial statements. This announcement signifies financial transparency and stability, potentially reinforcing investor confidence and impacting market perceptions positively.

Prime US REIT Issues Qualified Notice on Interest Transfers

Prime US REIT has issued a Qualified Notice under Treasury Regulation § 1.1446(f)-4(b)(3) regarding the transfer of interests in the trust. The notice confirms that the REIT is not engaged in a U.S. trade or business, thus qualifying for a withholding exception. This announcement is significant for stakeholders as it clarifies the tax implications for transferring interests in the REIT, potentially impacting investor decisions and market activity.