Amazon at the corporate level has instructed its staff to return for at least 3 days in a week.
This to me signals the return of demand for office spaces for USA. It is likely the WFH culture will be reduced dramatically on the basis of improved productivity.
Effects on PRIME REIT
With Inflation still high and an expected increase in demand for office spaces due to US firms stipulating periods of time to work at the office, I expect further positive rental revisions for 2023. This means higher rentals. I am forecasting revenue increase of 6%. (US$163 mil --> US$172.8 mil)
With the increase in interest rates for the next full financial year, I forecast an increase of interest expense by 13% as compared to this year's. (US$21.6mil--> US$24.4mil)
In 2022, there was a deferred tax expense of US$13.9 million due to revaluation losses. I do not expect another of the same magnitude, however,...