PRIME US REITs 3Q Updates
As expected, nothing positive and nothing spectacular. The presentation seems to be copy and paste from the previous report. Not sure what the management is trying to prove here. Are they trying to tell investors that they are doing all they can by actions that will be translated to results and dont need to have flowery reporting to win investors over? Or are they sitting on their asses? I hope it is the formal.
Issues surrounding the REIT.
1. High interest environment
2. Reluctance of workers to go back to office
3. Loan due mid 2024.
4. Valuation risk end of the year, aka Manulife REIT style "implosion"
It's the same 4 issues that have been flagged out since the beginning of time (ok, 1 year ago). I really hope the management of the REIT hasnt been sitting on their comfy seats and just waiting for things to happen. You have 12 months to avoid a head on collision.
What I do find abit more comforting is
1. Gearing seems to be stable.
2. Income available for distribution in 3Q is 14.72m USD compared to 14.35m USD in 2Q. Encouraging.
3. Total leasing activities in 3Q is more than the combined activities of 1H of 2023. Encouraging. Though, ill be happier if the bulk is new lease, and not renewal.
So perhaps the management is really doing something? I hope so.