- Manulife US REIT (SGX:BTOU) has endured a series of downsizing and non-renewals by key tenants. We estimate that Manulife US REIT's portfolio occupancy could deteriorate by 9ppt to 79% by end-24 if vacant spaces are not backfilled. We expect valuation of investment properties to decline 15%, or US$250m, and aggregate leverage to hit 51.5% at end-23.
- - Read this at SGinvestors.io -
Deleveraging through divestments.
- We estimate Phipps’ valuation dropping US$48m to US$162m after factoring in the downsizing by William Carter (occupancy dropped 14.5ppt to 80.0% in 1Q23) and cap rate expansion of 25bp to 6.1%.
- - Read this at SGinvestors.io -
Portfolio occupancy affected by downsizing and non-renewals.
- Quinn Emanuel had downsized by 71,000sf at Figueroa in Los Angeles in 3Q22, while William Carter had downsized by 68,880sf at Phipps in Atlanta in 1Q23.
- TCW Group will not be renewing when its lease for 188,835sf at Figueroa expires in Dec 23.
- The Children’s Place has exercised its early termination option and will vacate 197,949sf of space at Plaza in Secaucus in Jun 24.
- We estimated that Manulife US REIT’s portfolio occupancy could deteriorate by 9ppt to 79% by end-24 if vacant spaces are not backfilled.
Low physical occupancy could cause more downsizing.
- Read more at SGinvestors.io.
