The valuation drop caused the REIT’s aggregate leverage to spike to 57% as at June 30, with the erosion of capital values “more severe than anticipated”, says UOB Kay Hian analyst Jonathan Koh.
Analysts have downgraded Manulife US REIT (MUST) after the REIT’s portfolio valuation fell by 14.6% to US$1.63 billion ($2.16 billion) as at June 30, down from the valuation of US$1.91 billion as at Dec 31, 2022.
The decline was much greater than expected, says William (Tripp) Gantt, CEO of MUST in a call to media and analysts on July 18.
