Capital RaisingPrime US REIT will raise US$25mn via a private placement, issuing 129mn new units to fund capital expenditure, tenant incentives, and leasing costs to attract or retain tenants.
Cash Flow And PayoutThe payout ratio will be raised to at least 50%, with management seeing sufficient cash flow visibility to sustain the higher payout ratio.
Market RecoveryMaintain BUY with a higher DDM-derived target price, with cost of equity lowered amid signs of recovery in the US office market and cash flow visibility from new leases.