Manulife US Reit plans divestments, sponsor loan to fix covenant breaches; distributions still halted

MANULIFE US Real Estate Investment Trust (MUST) plans to raise funds through a mix of asset dispositions and a sponsor-lender loan to remedy its financial covenant breach, its manager said on Wednesday (Nov 29).

The recapitalisation plan – which requires unitholders to vote on three inter-conditional resolutions at an upcoming extraordinary general meeting (EGM) – seeks to “revitalise” the Reit, and provide more time for the manager to sell assets and realise value. 

However, distributions would continue to be halted until December 2025. The distributions could resume if the Reit meets “early reinstatement conditions” which are similar to the regulatory leverage limits in Singapore.