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Lessons from Manulife US Reit’s troubles

Timely recapitalisation exercises could transform perception of the beleaguered Reit’s peers and make them more appealing to bargain hunters

Ben Paul

Ben Paul

Published Mon, Jul 31, 2023 · 05:00 AM
    • The valuation of MUST's property on South Figueroa Street in Los Angeles has fallen 44.8 per cent since end-2021.
    • The valuation of MUST's property on South Figueroa Street in Los Angeles has fallen 44.8 per cent since end-2021. PHOTO: MANULIFE US REIT

    THE sell-off suffered by Manulife US Reit (MUST) since news broke that its property portfolio has been devalued by a further 14.6 per cent felt very much like the “final capitulation” phase of a long and brutal slump.

    As the market price of MUST’s units cratered, some analysts downgraded their recommendations and urged investors to flee. UOB Kay Hian dropped its target price from US$0.47 to US$0.165. DBS cut its target price from US$0.24 to US$0.10.

    MUST closed Friday (Jul 28) at US$0.111, down 34.3 per cent since the fateful announcement.

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    BT Correspondentsmanulife us reitPrime US ReitKeppel Pacific Oak US ReitUnited Hampshire US ReitCommercial propertyS-ReitsSpotlight

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