DBS Group: Prime US REIT's operational performance is strengthening, indicating a turnaround.

Derek Tan of the research department of DBS Group Holdings stated in a research report that the strong operational performance of Prime US REIT indicates a turnaround. The analyst mentioned that with the improvement of the macroeconomic situation in the United States and the strengthening of the office market fundamentals, the REIT has overcome the worst period. The occupancy rate of the REIT is expected to increase from around 80% in the first half of fiscal year 2025 to around 90% by the end of fiscal year 2025 or the first quarter of 2026, bringing the weighted average lease expiry to 4.7 years and increasing income visibility. The improvement in WALE and new leases starting from the second half of fiscal year 2025 are expected to increase net property income by around 20% in the coming years. DBS Group has a buy rating on this REIT and has adjusted the target price to $0.33; the REIT's stock price has dropped by 2.3% to $0.21.