“The decline in valuation was attributable to a mix of weakening occupational performance in MUST’s submarkets due to softer demand and leasing activity, as well as higher discount rates and capitalisation rates for certain properties on the back of macroeconomic headwinds and idiosyncratic risks at the property level,” says the analyst.
OCBC Investment Research analyst Chu Peng has maintained her “buy” rating for Manulife US REIT (MUST) with a lower target price (TP) of 41 US cents (54.5 cents) from 47 US cents previously.
In her report dated Jan 6, Chu notes that MUST recently reported an update on its asset valuations, which declined by 10.9% y-o-y to US$1.95 billion as at end-December 2022.
