Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Capital Markets

Manulife US REIT (MUST) / Equity Capital Markets

Manulife US Real Estate (MUST) plans to raise US$420m to purchase three US office assets, and thus, become Singapore's first US office REIT.We would avoid the deal given: the underlying growth dynamics of the portfolio appear unexciting; owing to the small market cap and the cross-continents exposure, demand from property accounts might be limited; growth will likely be constraint by lack of ROFR and high gearing; past REIT listings in Singapore have been less than stellar, to say the least; and, the offering yield might be at a premium to US markets but is at similar level to Singapore office plays and hence, offers no real IPO discount.&nbsp;The main saving grace for the deal is the&nbsp;USD exposure, which given the weakening bent of SGD might be appealing to some investors.

Manulife US Real Estate (MUST) plans to raise US$420m to purchase three US office assets, and thus, become Singapore's first US office REIT.We would avoid the deal given: the underlying growth dynamics of the portfolio appear unexciting; owing to the small market cap and the cross-continents exposure, demand from property accounts might be limited; growth will likely be constraint by lack of ROFR and high gearing; past REIT listings in Singapore have been less than stellar, to say the least; and, the offering yield might be at a premium to US markets but is at similar level to Singapore office plays and hence, offers no real IPO discount.&nbsp;The main saving grace for the deal is the&nbsp;USD exposure, which given the weakening bent of SGD might be appealing to some investors.

Ample reasons to avoid - mediocre growth outlook, high debt and no IPO discount to Singapore peers

Singapore

Manulife US REIT is a Singapore listed REIT established with the investment strategy principally to invest, directly or indirectly, in a portfolio of income-producing office real estate in key markets in the United States, as well as real estate-related assets.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Manulife US REIT (MUST) (MUST SP)

Ample reasons to avoid - mediocre growth outlook, high debt and no IPO discount to Singapore peers

Manulife US Real Estate (MUST) plans to raise US$420m to purchase three US office assets, and thus, become Singapore's first US office REIT.We...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)