“EHT’s IPO price was purportedly at a discount to its IPO net asset value of 88 US cents. In the end the net asset value (NAV) turned out to be an engineered NAV with financially engineered valuations, making EHT one of the most obvious financially engineered REITs to be listed on SGX — but not the only one,” wrote The Edge Singapore’s Goola Warden in a September 2021 article.
Singapore REITs (S-REITs), with their steady distributions, remain popular investments for local investors. However, certain setbacks, such as Eagle Hospitality Trust (EHT) and more recently, Manulife US REIT (MUST), have shown that not all trusts are built alike.
For context, EHT was listed on the Singapore Exchange’s (SGX) Mainboard in May 2019 with an offer price of 78 US cents. In less than a year, in March 2020, the REIT suspended trading and deferred payment of its latest distribution to unitholders. At the time, EHT’s managers attributed the move to the continued deterioration of the US and global hospitality markets due to the Covid-19 pandemic, which had brought about steep and unprecedented declines in national occupancy levels. In November 2020, the Monetary Authority of Singapore (MAS) ordered the removal of EHT's manager.
