- In the latest updated asset valuation as of 1H23, Manulife US REIT’s portfolio valuation declined by 14.6% to US$1.6bn vs US$1.9bn as at Dec 22. See Manulife US REIT's announcement dated 18 Jul 23.
Gearing spikes to 57% with another 15% decline in asset valuation
- - Read this at SGinvestors.io -
- While the gearing limit does not by itself constitute a breach, it has three other major implications on Manulife US REIT:
- - Read this at SGinvestors.io -
- cross default of interest rate swaps, which will subject Manulife US REIT to higher interest rates for its loans, and subsequently impact the ICR ratio; and
- potential implications on distributions to be declared, with Manulife US REIT expecting to report a loss in its 1H23 financial results.
- Manulife US REIT is currently in discussions with its lenders
- to waive the breach of the financial covenants,
- exploring an option to lower the ratio of total unencumbered debt vs unencumbered assets, and
- seeking approval to declare distributions.
- In the announcement, Manulife US REIT mentioned that the manager and sponsor are exploring a potential alternative method with its lenders, which may address Manulife US REIT’s mid and long-term liquidity needs.
Details on the asset valuation decline.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Rachel TAN DBS Group Research | Derek TAN DBS Research | https://www.dbs.com/insightsdirect/ 2023-07-19
Previous report by DBS:
2023-05-24 Manulife US REIT - Moving The Gearing Needle Down.
Price targets by 3 other brokers at Manulife US REIT Target Prices.
Listing of research reports at Manulife US REIT Analyst Reports.
Relevant links:
Manulife US REIT Share Price History,
Manulife US REIT Announcements,
Manulife US REIT Dividends & Corporate Actions,
Manulife US REIT News Articles