While I know that share price movements is not a good topic to speak about for stock analysis here. I need to use it as a reference. For the past 3 months, the share price of Prime US has gyrated between 9 cents and 20 cents. Much of the price movement has been un-related to the company such as the suspension of dividends by Keppacoak or the sudden delay in FY reported by Keppelpacific. The price discovery of this REIT is in a flux and any small news can lead to a large % change which investors will not expect for in REITs
The only related share movement (down by 10%) is due to the resignation of its CEO at short notice.
PRIME is in the weak US office market and among the 3 REITs, it has the youngest property portfolio which explains why its CAPEX has been relatively lower than Keppel and Manulife.
However for those investors to be, the debt profile of PRIME shows that it has a maturing bank loan of US$478 million (~70%) which it is in the process of negotiaiting with banks to renew in July 2024. This is the Damascus sword hanging over the REIT. A successful renewal and we could see share prices doubling. If the loan facility is downsized to below US$478 mil, I will not be surprised that a rights raising will be done.
The REIT is setting aside US$40 million by reducing its dividends in case things go south. With free cash generation ability of about US$50 million per annum, it is definitely a good REIT to own (but only after the conclusion of the debt renewal for July 2024).
The only related share movement (down by 10%) is due to the resignation of its CEO at short notice.
PRIME is in the weak US office market and among the 3 REITs, it has the youngest property portfolio which explains why its CAPEX has been relatively lower than Keppel and Manulife.
However for those investors to be, the debt profile of PRIME shows that it has a maturing bank loan of US$478 million (~70%) which it is in the process of negotiaiting with banks to renew in July 2024. This is the Damascus sword hanging over the REIT. A successful renewal and we could see share prices doubling. If the loan facility is downsized to below US$478 mil, I will not be surprised that a rights raising will be done.
The REIT is setting aside US$40 million by reducing its dividends in case things go south. With free cash generation ability of about US$50 million per annum, it is definitely a good REIT to own (but only after the conclusion of the debt renewal for July 2024).