• 3Q26 NPI/DI of S$20.9mn/S$8mn exceeded our expectations, growing 24.4%/27% YoY on the commencement of previously signed leases. These accounted for 31%/36% of our FY26e forecasts. 9M26 NPI/DI of S$54.3mn/S$19.1mn also exceeded our forecasts, representing 81%/85% of FY26e estimates.
• Portfolio occupancy edged up 0.1ppt QoQ to 84.2%. A total of 131k sqft of leases (3.1% of NLA) were signed in 3Q26, at a -2% rental reversion (9M26: +1.5%). The negative reversion was attributable to the early renewal of a 10-year lease at 222 Main at market rents. Refinancing of the US$550mn credit facility and US$66.95mn loan is expected to be completed by early December 2026.
• Maintain BUY with a lower DDM-derived TP of US$0.21 (prev. US$0.25), following a 25bps increase in our cost of equity to reflect the higher interest rate environment. We raise our FY26e DPU estimate by 18% on higher cash contributions from newly commenced leases but lower our FY27e DPU estimate by 12% on higher finance costs. 369k sqft of committed leases (8.8% of NLA) have yet to commence cash contributions and are scheduled to contribute progressively from 4Q26 onwards, including 77k sqft (1.8% of NLA) in 4Q26, further supporting cash rental income growth. Prime is taking a prudent approach to new leasing. Securing new tenants requires upfront CAPEX and additional borrowings, which could place further pressure on its balance sheet. As such, we expect portfolio occupancy to remain relatively flat QoQ in 4Q26. Assuming a 65% payout ratio, the current share price implies FY26e/FY27e DPU yields of 11.0%/10.1%, respectively.

Overview BLOKS is a leader in China’s assembly character toys market. The company holds over 500 patents, possesses original IP capabilities, and has non-exclusive licenses for approximately 50 well-known IPs. Its product positioning is “high quality at a reasonable price.” Leveraging its product strength and supply chain advantages, BLOKS maintains cost competitiveness while continuously expanding its product categories. The company has established a multi-channel sales network, and since 2022, has primarily focused on offline channels centered on distributors. According to...
Continue Reading

Overview POP MART is primarily engaged in the design and development of trendy toys. It operates a comprehensive platform covering the entire industry chain of intellectual property (IP) for trendy toys, with businesses including IP incubation and operation, trendy toys and retail, theme park and experiences, and digital entertainment. The company’s products include blind boxes, figurines, ball-jointed dolls (BJD), MEGA, plush toys, and derivatives, among others. Its self-developed products primarily feature artist-owned IPs such as THE MONSTERS, MOLLY, SKULLPANDA, and...
Continue Reading