“We view Prime as a value proxy to the US office sector, which is showing early signs of recovery in recent quarters,” state Tan and Lai in their Nov 3 note. “We believe Prime US REIT has moved past its worst times.”
DBS Group Research analysts Derek Tan and Dale Lai have reinitiated coverage on Prime US REIT with a “buy” rating and DCF-backed target price of 35 US cents. The latest target price implies a target dividend yield of 4.3% and target P/B of 0.65 times.
The optimism is based on how the US office market is showing clearer signs of stabilisation, with leasing demand and occupancy metrics improving across major markets.
