Manulife US Reit’s new leaders will have to meet asset disposition targets, win back investor trust

THE announcement of a major leadership change at the manager of Manulife US Reit (MUST) this past week may have unnerved some investors, coming just as the plan to recapitalise the beleaguered US office property trust is entering the crucial asset disposition phase.

Why are executives at MUST’s manager heading for the exit now? Do they not have confidence in the recapitalisation plan they helped put in place? Is there trouble on the horizon that unitholders do not know about?

Marc Feliciano, chairman of MUST’s manager, told me last week that the exodus of key executives is not a harbinger of any change in the execution of the recapitalisation plan.