Manulife US REIT - UOB Kay Hian 2023-11-30: Breathing Space For Orderly Deleveraging

Manulife US REIT - Breathing Space For Orderly Deleveraging

Manulife US REIT (SGX:BTOU) | SGinvestors.ioManulife US REIT (SGX:BTOU)
  • The success of Manulife US REIT’s recapitalisation and deleveraging plan hinges on progress of divestments. Interest rates are expected to decline in 2H24, which make the environment more conducive for divestments. The first step towards revival is to obtain waiver from lenders.
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  • Valuation of Manulife US REIT is attractive with 2026 distribution yield at 15.1% and P/NAV at 0.44x. Maintain BUY. Target price: US$0.13.

Recapitalisation plan to revive Manulife US REIT.

  • Manulife US REIT (SGX:BTOU) has announced its Recapitalisation plan (see Manulife US REIT's announcement dated 29 Nov).
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    • six-year unsecured Sponsor-Lender Loan of US$137.0m with interest rate at 7.25% and exit premium of 21.16% (effective interest rate is 10% per annum), and
    • Manulife US REIT’s own cash holdings of US$50.0m.
    • Manulife US REIT intends to raise at least US$328.7m (excluding divestment of Park Place) through asset dispositions. The divestments will strengthen Manulife US REIT’s balance sheet and fund essential capital expenditure.

Balance sheet strengthened with lower gearing.

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Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @

Jonathan KOH CFA UOB Kay Hian Research | 2023-11-30

Read also UOB's most recent report:
2024-02-13 Manulife US REIT - Pulling Multiple Levers To Deleverage.

Price targets by 2 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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