Prime US REIT's Performance Could Be Turning Around -- Market Talk

Dow Jones
2025/11/03

0418 GMT - Prime US REIT's strengthening operational performance signals a turnaround to DBS analysts Derek Tan and Dale Lai. They believe the REIT has moved past its worst period on improving macroeconomic conditions and stronger office fundamentals. A longer weighted average lease expiry of 4.7 years and higher occupancy rates show stronger financial resilience, they say. Prime US REIT's recent equity fundraising should also support a higher distribution payout ratio of 50% versus 10% previously, the analysts say. The larger payout implies 6.2%-7.4% yield for 2026-2027. DBS restarts its coverage on Prime US REIT with a buy rating and a target of US$0.35 on the units, which are 4.6% higher at US$0.205. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

November 02, 2025 23:18 ET (04:18 GMT)

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