"We also note that supply ahead in MUST’s sub-market remains limited. Overall, co-working spaces still account for only <2% of MUST’s portfolio, thus we see limited impact from the potential fallout of co-working operators for now," says Vijay.
SINGAPORE (Dec 13): RHB Research is keeping Manulife US REIT (MUST) at "buy" with new target price of US$1.10 on strong demand for US office property, low interest rates, strong earnings track record and better investor education.
In a Friday report, analyst Vijay Natarajan says US office rents are expected to continue their uptrend, increasing 0.9% q-o-q in 3Q19. And although the co-working sector is seeing tapering office growth, demand from tech, creative, and life sciences tenants should continue to drive occupancy gains, adds the analyst.
