Manulife US REIT - OCBC Investment 2023-01-06: Higher Risk Profile But Seeking Solutions

• Latest portfolio asset valuation fell 10.9% y-o-y due to challenging operating landscape and market transactions at weaker pricing.
• Manulife US REIT's gearing expected to increase to 49%, just shy of the regulatory limit.
• - Read this at SGinvestors.io -

Manulife US REIT's net asset value expected to fall US$0.13 per unit

• The real estate valuation of Manulife US REIT (SGX:BTOU)’s portfolio declined by 10.9% y-o-y to US$1,947.0m, based on its latest independent valuation, as at end-Dec 2022. The decline in valuation was attributed to a mix of weakening occupational performance in Manulife US REIT’s submarkets due to softer demand and leasing activity, as well as higher discount rates and capitalisation rates for certain properties on the back of macroeconomic headwinds and idiosyncratic risks at the property level.
• - Read this at SGinvestors.io -
• Despite the decline in valuation, the financial covenants in Manulife US REIT’s existing loans are not expected to be breached, according to Manulife US REIT.

Prioritising divestments to lower its gearing

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Chu Peng OCBC Investment Research | https://www.iocbc.com/ 2023-01-06 SGinvestors.io

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