Manulife US Reit clarifies US bank exposure after share price falls 14%

NONE of the lenders of Manulife US Reit is a regional bank in the United States, its manager said in a Monday (Mar 27) bourse filing. This disclosure came after units of the real estate investment trust (Reit) tumbled 14 per cent, or US$0.035, on Monday to close at US$0.215.

Its manager, Manulife US Real Estate Management, had received “multiple queries” on Monday following news of US regional banks’ troubles and investor sentiment on US-based real estate funds, it said. The Reit’s lenders are mainly Singapore and international banks.

The manager added that the Reit’s unsecured sustainability-linked loan facility has been fully drawn to refinance its US$105 million Phipps mortgage loan. “Manulife US Reit will not have any refinancing requirements until 2024 and 100 per cent of its loans will be unsecured,” it said.

As reported on Mar 15, Manulife US Real Estate Management is in discussions with Mirae Asset regarding a potential transaction which may involve the acquisition of its own shares, and the subscription of new shares in Manulife US Reit. The manager has denied reports of a 200 billion won (S$206.4 million) figure for the sale.

Due diligence on the transaction is ongoing, and the manager will make further announcements if there are material developments, it said.