Centerpointe I & II (Photo: Manulife US REIT)Manulife US REIT's Centerpointe I & II (Photo: Manulife US REIT)

Data from Manulife US REIT’s latest disclosure has been updated into the Singapore REITs table

Manulife US REIT will soon be the most highly-leveraged REIT on the Singapore Exchange (SGX).

The REIT reported on 30 December that the valuation of its portfolio has declined by 10.9% or USD237.4 million to USD1,947.0 million.

The decline in valuations have been largely attributed to a slowdown in demand and leasing activity in markets it operates in, among other factors.

The weakening has led to higher concession package assumptions, said the REIT.

Given the revolution loss, Manulife US REIT’s expected aggregate leverage will be approximately 49%.

The Monetary Authority of Singapore has stipulated a leverage limit of 50% for REITs listed in the country.

Meanwhile, its projected interest coverage ratio as at 31 December 2022 will be approximately 3.1 times.

Furthermore, the decline in valuation would result in Manulife US REIT’s net asset value decreasing by approximately USD0.13 per unit.

The REIT has indicated that its existing loan covenants are not expected to be breached despite the decline in valuation.

Manulife US REIT was last done on the SGX at USD0.31, which presently implies a distribution yield of 16.84% according to data on the Singapore REITs table.

Related: Manulife US REIT ponders mandate as an office-only REIT amid economic headwinds

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.