Manulife US Reit gearing a whisker shy of 50% regulatory limit after asset valuation decline

THE real estate valuation of Manulife US Real Estate Investment Trust (Manulife US Reit)‘s portfolio has fallen by 10.9 per cent to US$1.9 billion, from US$2.2 billion as at end-2021.

This was attributed to higher discount rates and capitalisation rates for certain properties. The manager said this was reflective of risks posed by a volatile macroeconomic environment as well as idiosyncratic risks at the property level, such as higher vacancy or weak submarket fundamentals.

The decline in valuation was also due to continued weakening of occupational performance in submarkets where the properties are located, said the manager on Friday (Dec 30).