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Prime US REIT (SG:OXMU)
SGX:OXMU
Singapore Market

Prime US REIT (OXMU) AI Stock Analysis

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Prime US REIT

(SGX:OXMU)

Rating:52Neutral
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 (OXMU) vs. iShares MSCI Singapore ETF (EWS)

Prime US REIT Business Overview & Revenue Model

Company DescriptionPrime 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 MoneyPrime 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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
153.82M132.37M159.89M154.50M144.74M136.21M
Gross Profit
81.18M62.96M87.02M89.22M88.50M87.45M
EBIT
78.95M69.32M73.52M-58.63M71.87M55.06M
EBITDA
0.0041.04M73.52M-21.35M88.02M55.06M
Net Income Common Stockholders
-130.10M8.05M-115.84M-26.92M68.19M23.21M
Balance SheetCash, Cash Equivalents and Short-Term Investments
15.50M27.48M11.76M11.58M13.87M37.44M
Total Assets
1.60B1.39B1.44B1.59B1.67B1.45B
Total Debt
683.47M637.27M696.55M665.57M628.97M480.35M
Net Debt
667.97M609.78M684.79M653.99M615.10M442.91M
Total Liabilities
716.79M678.32M730.46M695.26M681.85M539.06M
Stockholders Equity
885.92M716.38M713.65M893.79M991.08M907.79M
Cash FlowFree Cash Flow
78.86M33.99M61.20M59.69M79.59M78.12M
Operating Cash Flow
78.86M72.19M85.63M89.18M95.69M89.85M
Investing Cash Flow
-32.04M37.85M-24.34M-30.11M-260.36M-175.92M
Financing Cash Flow
-21.53M-94.31M-61.12M-61.34M141.14M85.58M

Prime US REIT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.14
Price Trends
50DMA
0.14
Positive
100DMA
0.15
Negative
200DMA
0.16
Negative
Market Momentum
MACD
<0.01
Negative
RSI
56.87
Neutral
STOCH
78.52
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$262.62M8.596.86%9.23%1.37%-10.66%
61
Neutral
$2.83B10.980.41%8438.90%5.81%-21.06%
56
Neutral
S$396.73M31.721.60%9.29%16.79%
55
Neutral
$197.40M-0.96%24.56%-2.52%89.81%
52
Neutral
$185.77M23.281.13%2.02%-11.42%
SGXZL
$179.83M-5.56%5.10%
47
Neutral
$113.70M-34.26%-19.44%53.13%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:OXMU
Prime US REIT
0.14
0.03
27.27%
SG:UD1U
IREIT Global
0.30
0.01
3.45%
SG:XZL
ARA US Hospitality Trust
0.31
0.05
19.23%
SG:CMOU
Keppel Pacific Oak US REIT
0.19
0.05
35.71%
SG:BTOU
Manulife US REIT
0.06
-0.01
-14.29%
SG:ODBU
United Hampshire US Real Estate Investment Trust
0.44
0.07
18.92%

Prime US REIT Corporate Events

Prime US REIT Removed from Mandatory Quarterly Reporting List
Apr 9, 2025

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
Apr 7, 2025

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
Mar 28, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.