MUST’s latest 1HFY2023 ended June financial statement states that due to the reclassification of loans and borrowings into current liabilities as a result of a breach of a financial covenant, the manager is not in a position to declare any distribution for the half-year.
Can Manulife US REIT (MUST) (SGX:BTOU
) be saved? Marc Feliciano, Manulife Investment Management’s global head of real estate, private markets, believes it is “absolutely” possible. That sounds like good news to many MUST unitholders. However, it is a tall order for the manager and sponsor and will require a leap of faith.
As at Aug 16, MUST is trading at just 8.9 US cents (12.11 cents). Based on its 1.836 billion units in issue, this translates into a market capitalisation of just US$163.4 million. Although this is above the cash of US$133 million on its balance sheet, its current liabilities outweigh current assets by more than US$880 million as all MUST’s debt is deemed as current by its 12 lenders.
