Phipps was valued at US$210 million ($282.63 million) as at Dec 31, 2022, at a capitalisation rate of 5.25%. Its net property income (NPI) in FY2022 was US$12.2 million, up from US$11.9 million in FY2021, and contributed 10.8% to MUST’s total NPI in FY2022.
On May 24, the manager of Manulife US REIT (MUST)(SGX:BTOU
) announced that it had entered into a letter of intent with its sponsor Manulife concerning the proposed sale of Phipps Tower in Atlanta.
Divesting the asset looks like the best option for Manulife US REIT (MUST), analysts, investors and market watchers agree. This is because selling a meaningful property would lower aggregate leverage, demonstrate sponsor support and trigger a rebound in MUST’s unit price.
