Manulife US REIT - DBS Research 2023-07-19: A Case Of Too Little, Too Late

Manulife US REIT - A Case Of Too Little, Too Late

Manulife US REIT (SGX:BTOU) | SGinvestors.ioManulife US REIT (SGX:BTOU)

Gearing spikes to 57% with another 15% decline in asset valuation

  • - Read this at -
  • While the gearing limit does not by itself constitute a breach, it has three other major implications on Manulife US REIT:
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    2. 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
    3. 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
    1. to waive the breach of the financial covenants,
    2. exploring an option to lower the ratio of total unencumbered debt vs unencumbered assets, and
    3. 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.

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Rachel TAN DBS Group Research | Derek TAN DBS Research | 2023-07-19

Read also DBS's most recent report:
2024-02-09 Manulife US REIT - Focus On Leasing & Divestments.

Previous report by DBS:
2023-11-30 Manulife US REIT - Throwing A Lifeline; Downgrade To HOLD.

Price targets by 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


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