Prime US REIT has announced a significant milestone with the signing of a large anchor tenant lease, reflecting continued demand for US office space despite recent tariff announcements. This development has prompted RHB to maintain its “Buy” recommendation, raising the target price to $0.23 from $0.18, indicating a potential 39% upside. The REIT is expected to secure another major lease by the end of the third quarter of 2025, which could further enhance its portfolio occupancy and asset valuations year-on-year.
The recent lease signing is a positive indicator for Prime US REIT, suggesting resilience in the US office market. However, the volatile interest rate environment remains a challenge, with a dovish shift potentially acting as a catalyst for further growth. Currently, the stock is trading at a discount of over 70% to its book value, presenting an attractive opportunity for investors.
Analyst Vijay Natarajan highlighted the importance of this lease in boosting the REIT’s asset valuations and overall portfolio occupancy. “The demand for office space remains resilient,” he noted, despite the broader economic uncertainties.
Looking ahead, Prime US REIT’s strategic focus on securing large leases and navigating interest rate fluctuations will be crucial in maintaining its growth trajectory. The anticipated lease signing by the end of Q3 2025 could further solidify its market position, offering investors a promising outlook amidst the current economic landscape.
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