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You are both correct. The valuer factors both the surrounding building sale price and occupancy into account. Depending on the circumstances, the valuer may give more weight to one than the other.
The way the occupancy is factored into the valuation is complex. At any given point in time, a given valuation makes an assumption about how occupancy will grow over time as part of a fundamental valuation of the property' s cash flows. Then, at a future time when another valuation is done, if the actual occupancy is better than the previous valuation had assumed then the valuation will go up. Even if the occupancy turns out exactly what was previously assumed the valuation would normally go up because of time value of money factor (the only exception being if this is outweighed by the decline in value from a lower remaining lease which only happens when the remaining lease term is relatively short). However if the occupancy level turns out to be lower than what was previously assumed then the valuation may go down (even if in absolute terms occupancy went up) because the outturn was worse than previously expected.
The way the occupancy is factored into the valuation is complex. At any given point in time, a given valuation makes an assumption about how occupancy will grow over time as part of a fundamental valuation of the property' s cash flows. Then, at a future time when another valuation is done, if the actual occupancy is better than the previous valuation had assumed then the valuation will go up. Even if the occupancy turns out exactly what was previously assumed the valuation would normally go up because of time value of money factor (the only exception being if this is outweighed by the decline in value from a lower remaining lease which only happens when the remaining lease term is relatively short). However if the occupancy level turns out to be lower than what was previously assumed then the valuation may go down (even if in absolute terms occupancy went up) because the outturn was worse than previously expected.
pc1234 ( Date: 27-Sep-2025 21:53) Posted:
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I thought the building valuation depends more on the surrounding buildings sale price.
for example, if your neighbour sold their property cheap cos of fire sale, then the valuation of the whole area would be lower.
for example, if your neighbour sold their property cheap cos of fire sale, then the valuation of the whole area would be lower.
marketuncle ( Date: 27-Sep-2025 14:56) Posted:
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Given the increasing occupancy they managed to secure, quite likely the ppty valuation will go up by the next valuation at end of the year. Leverage ratio will then improve accordingly.
pc1234 ( Date: 26-Sep-2025 09:32) Posted:
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Bought more at 20cents. Look like 198 is low liao wait for clear 205 then go up
TraderBen ( Date: 26-Sep-2025 14:33) Posted:
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I am happy to pick this up even at current rates. If it drops to .19 then add more and average down. but when the next 2 rate cuts happen by the fed which is expected in Oct and December, I expect this to move up really fast. Even the current private placement was done for ading new business which will increase the DPU. Expect its yield to be super impressive for next few years. And there is potential for them to keep increasing the payout ratio.
good buy.. drop drop 1 pip.. up is up 5 pips..
piscesmonkey ( Date: 26-Sep-2025 14:16) Posted:
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Hmm look like got buyer. I bought at 199
piscesmonkey ( Date: 26-Sep-2025 12:49) Posted:
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Half year distribution at USD1.5m, full year estimate USD3.0m.
This is at 10%. At 50%, will be USD15.0m. So 60% of placement funneled back to distribution
This is at 10%. At 50%, will be USD15.0m. So 60% of placement funneled back to distribution
May close near palcement aroubd 195
piscesmonkey ( Date: 26-Sep-2025 11:13) Posted:
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Prime US REIT to raise US$25 million via private placement distribution to normalise from 10% to 50%
Prime US REIT plans to raise at least US$25 million via a private placement to fund plans to generate organic growth, with the US office market showing signs of recovery. Having held back distribution to unitholders previously, Prime US REIT plans to normalise distribution at 50% of its distributable income from the current half year, from 10% now.
The new units will be priced between 19.35 US cents, and 20 US cents.
At this pricing range, the placement will be priced at a discount of between 7 and 10% off the volume weighted average price of 21.5 US cents on Sept 24.
According to Prime US REIT, the bulk of the funds to be raised, or US$24.2 million, will be used for capex, tenant incentives, costs to secure new tenants, retain existing tenants, and so on.
The REIT observes that its leasing momentum this year has " improved considerably" over 2024, with more than 400,000 square feet of leases signed in the first six months of 2025.
Its occupancy rate has increased to 80.2% as at June 30 from 78.9% as at March 31. Its weighted average lease expiry has lengthened to 4.7 years as at June 30 compared to 4.3 years as at March 31. It is also enjoying an annual rent escalation of 2% to 3% and expects leasing volume to further improve in 2025 which would result in a higher occupancy rate as compared to that of June 30.
Prime US REIT says this increase in demand validates the quality and strategic positioning of its assets and correspondingly creates a need for capital to activate the signed leases and support its upcoming pipeline of leases.
" To maintain the high quality of the properties and to secure tenants to build on the organic growth of Prime US REIT, Prime US REIT will need to finance capital expenditure, tenant incentives and leasing costs to secure new tenants, retain existing tenants or to satisfy its obligations to existing tenants," says the REIT.
The REIT says that capital applied to the recently signed leases will enable the leases to commence resulting in stable and recurring property income stream for Prime US REIT&rsquo s assets.
In addition, the REIT is in " advanced" lease negotiations amounting to more than 150,000 square feet of space.
" The private placement positions Prime US REIT with capital readiness to immediately fund the activation of the leases upon signing, avoiding delays in capitalising on this demand and accelerating Prime US REIT&rsquo s path to higher cash flows and higher distribution payout," the REIT says.
Upon completion of the placement, the unit base will increase by 9.7%.
In its most recent 1HFY2025, Prime US REIT distributed 0.12 US cents per unit, equivalent to 10% of its distributable income for the half year ended June period.
As the US office market was working through its post-pandemic slump, the REIT was prioritising reinvestment into its portfolio by retaining the distributable income.
With the commencement of some of the new leases and " high degree of visibility" on future contractual cash flows, the REIT thinks it is reasonable to begin normalising distribution, and increase its distributable income payout ratio to at least 50% for the current 2HFY2025 onwards.
As such, ahead of the new units to be issued, Prime US REIT will pay an advanced distribution of 50% of the distributable income for July 1 to Oct 5 of around 0.24 US cents.
" As the rent payment of a majority of the newly signed leases commences throughout 2026, the manager expects further growth in Prime US REIT&rsquo s property cash income.
" This allows the manager to confidently implement a progressively higher distribution policy, with future increases in tandem as more leased space transits from rent-free period to cash-generating status," says Prime US REIT.
I will enter at 190 😋
TraderBen ( Date: 26-Sep-2025 11:04) Posted:
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chance for u to enter
piscesmonkey ( Date: 25-Sep-2025 10:48) Posted:
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Different management style. To pay out dividends in this climate, there are trade offs and u are seeing it unfolding. Share prices will tank if there is a mis step/calculation.
I rather KORE, pace out their dividends, maintain leverage, and preserve NAV. Which is what they are doing now. Even though KORE has a much healthier metrics, they are cautious which is good for long term shareholders.
Preference is yours.
pc1234 ( Date: 26-Sep-2025 09:32) Posted:
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Surprised they did not do a rights issue as well. Unclear if the placement in itself is of a size to be enough to remove the gearing issue as a concern.
Placement low it will go down near placement price
As at 30 June 2025, KORE&rsquo s aggregate leverage and interest coverage ratio was 43.7% and 2.5 times, respectively, whereas Prime US REIT&rsquo s leverage (aggregate gearing) is around 46.7% as of June 30, 2025.
But PRIME payout 10% its distributable income, and in 2H25 onward, will increase the payout to 50%. KORE stopped payout since 2023.
But PRIME payout 10% its distributable income, and in 2H25 onward, will increase the payout to 50%. KORE stopped payout since 2023.
Buradin ( Date: 25-Sep-2025 13:35) Posted:
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Actually the signs are there, with the leverage hovering so close to 50%, i am not sure why ppl still buying prime, when KORE has so much more better prospect and with good management of the financing situation.
This private placement offered at a huge discount to current NAV of $0.55 would dilute the NAV further to $0.518.
Not sure why it is not offered to existing shareholders who have been suffering past few years.
Its a great dis-service to those who had bought at IPO price of USD$0.88.
Not sure why it is not offered to existing shareholders who have been suffering past few years.
Its a great dis-service to those who had bought at IPO price of USD$0.88.
https://www.minichart.com.sg/2025/09/25/prime-us-reit-launches-25-million-private-placement-to-fund-leasing-growth-reduce-leverage-and-boost-distribution-payout-ratio-1-2-3-4/
piscesmonkey ( Date: 25-Sep-2025 10:48) Posted:
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Open below 20cents liao
TraderBen ( Date: 25-Sep-2025 09:26) Posted:
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