Wolf Money(Prime US REIT)

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The below article is for educational purpose only. Kindly refrain from taking any action. It shouldn’t constitute as an investment advice. Please read the disclaimer.

I bought a small position in Prime US REIT to keep me interested in the company. Among the 3 US office REITs, Prime US REIT is the only REIT with an increased valuation in their latest results. There are pro and cons in Prime US REITs. Below are the few points.

Pros

*It is trading at a 75% discount to book value with book value at USD 0.55c per share.

*The US government mandates federal employees to be back to office. 

*With the tariff imposed, more companies will be on-shoring their operations in mainland USA.

*Their property occupancy rate is at 80% which was an improvement from last year.

*In their website, they proclaim to own grade A offices only. Most of the offices are relatively new with the exception to 171 17th street which is 22 years old.

Cons 

*Trump’s economic policies might affect employment in US thus lowering office demand.

*Current low yield of 2% as the majority of the dpu are kept to improve occupancy rate. 

This is more like a speculative reit. If they start paying normal dividend again, the prices will correspondingly react to the higher yield. 

The position is still a test case. Support at usd 0.13c and usd 0.11c. More detail at the end of month update.

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https://t.me/joinchat/oCgkD3sQFRMzMWM1



Disclaimers 

All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for education only. Buyer beware,do you own due diligence.


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