Manulife US REIT - DBS Research 2025-02-21: A Year In Transition, Deleveraging Still A Key Focus.

• Manulife US REIT reported 2H24 revenues and net property income of US$ 80.8mil and US$ 37.1mil, down 25% and 37% respectively.
• On a same-store basis, adjusting for divestments (Capitol, Park Place, Tanasborne), revenues and net property income dipped by 21% y-o-y and 34% y-o-y due to the loss of income from a major non-renewal at TCW Group in Figueroa (Los Angeles) and another financial tenant vacate at Exchange.
• - Read this at SGinvestors.io -

Financial metrics stretched.

• Manulife US REIT recorded a 9.3% y-o-y decline in valuation to US$ 1.14 bn. The decline was primarily driven from an expansion in cap rates (+27bps) and discount rates (+46 bps) and selected properties seeing weaker cashflow visibility to higher vacancy rates.
• - Read this at SGinvestors.io -
• As a result of the drop in valuations, Manulife US REIT’s gearing rose slightly to 64.2% (+1 ppt y-o-y) with bank interest coverage ratio at 1.7x.

Ongoing recapitalisation process in focus.

• Read more at SGinvestors.io.

Rachel TAN DBS Group Research | Derek TAN DBS Group Research | https://www.dbs.com/insightsdirect/ 2025-02-21 SGinvestors.io

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