Manulife US REIT Price Performance Likely Hampered by Drop in Valuation, Covenant Breach -- Market Talk

Dow Jones2023-07-20

0414 GMT - Manulife US REIT's fall in asset valuations, the breach of a financial covenant on some of its loans, and long-term strategy opacity could hamper its units, CGS CIMB analysts Lock Mun Yee and Natalie Ong say in a research note. The REIT may be subject to higher interest rates for its loans since the covenant breach would result in a cross default of its interest rate swaps. They cut its target price to US$0.41 from US$0.55. However, the Malaysia-based bank maintains its add rating as its unit price has factored in much of its challenges. A solution to its liquidity needs and improvement in the U.S. office market are potential re-rating catalysts for the trust, they say. Units are down 1.7% at US$0.114. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

July 20, 2023 00:14 ET (04:14 GMT)

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2352098667?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2023-07-20 12:14","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2352098667","market":"hk","top_or_hot":-1,"title":"Manulife US REIT Price Performance Likely Hampered by Drop in Valuation, Covenant Breach -- Market Talk","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0414 GMT - Manulife US REIT's fall in asset valuations, the breach of a financial covenant on some of its loans, and long-term strategy opacity could hamper its units, CGS CIMB analysts Lock Mun Yee and Natalie Ong say in a research note. The REIT may be subject to higher interest rates for its loans since the covenant breach would result in a cross default of its interest rate swaps. They cut its target price to US$0.41 from US$0.55. However, the Malaysia-based bank maintains its add rating as its unit price has factored in much of its challenges. A solution to its liquidity needs and improvement in the U.S. office market are potential re-rating catalysts for the trust, they say. Units are down 1.7% at US$0.114. (sherry.qin@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  July 20, 2023 00:14 ET (04:14 GMT)\n</p>\n<p>\n  Copyright (c) 2023 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Manulife US REIT Price Performance Likely Hampered by Drop in Valuation, Covenant Breach -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nManulife US REIT Price Performance Likely Hampered by Drop in Valuation, Covenant Breach -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2023-07-20 12:14</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     0414 GMT - Manulife US REIT's fall in asset valuations, the breach of a financial covenant on some of its loans, and long-term strategy opacity could hamper its units, CGS CIMB analysts Lock Mun Yee and Natalie Ong say in a research note. The REIT may be subject to higher interest rates for its loans since the covenant breach would result in a cross default of its interest rate swaps. They cut its target price to US$0.41 from US$0.55. However, the Malaysia-based bank maintains its add rating as its unit price has factored in much of its challenges. A solution to its liquidity needs and improvement in the U.S. office market are potential re-rating catalysts for the trust, they say. Units are down 1.7% at US$0.114. (sherry.qin@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  July 20, 2023 00:14 ET (04:14 GMT)\n</p>\n<p>\n  Copyright (c) 2023 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"MFC","symbol_name":"宏利金融","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2352098667","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2352098667","pubTimestamp":1689826440,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0414 GMT - Manulife US REIT's fall in asset valuations, the breach of a financial covenant on some of its loans, and long-term strategy opacity could hamper its units, CGS CIMB analysts Lock Mun Yee and Natalie Ong say in a research note. The REIT may be subject to higher interest rates for its loans since the covenant breach would result in a cross default of its interest rate swaps. They cut its target price to US$0.41 from US$0.55. However, the Malaysia-based bank maintains its add rating as its unit price has factored in much of its challenges. A solution to its liquidity needs and improvement in the U.S. office market are potential re-rating catalysts for the trust, they say. Units are down 1.7% at US$0.114. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"MFC":"宏利金融","BK6132":"办公室房地产信托","BK6512":"房地产股","REIT":"ALPS Active REIT ETF","BK6099":"办公房地产投资信托","BK4162":"人寿与健康保险","BTOU.SI":"宏利美国房地产投资信托"},"translate_title":"宏利美国产业信讬股价表现可能受估值下跌及违反契约影响-市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"REIT":1,"MFC":1,"BTOU.SI":0.9},"content_text":"0414 GMT - Manulife US REIT's fall in asset valuations, the breach of a financial covenant on some of its loans, and long-term strategy opacity could hamper its units, CGS CIMB analysts Lock Mun Yee and Natalie Ong say in a research note. The REIT may be subject to higher interest rates for its loans since the covenant breach would result in a cross default of its interest rate swaps. They cut its target price to US$0.41 from US$0.55. However, the Malaysia-based bank maintains its add rating as its unit price has factored in much of its challenges. A solution to its liquidity needs and improvement in the U.S. office market are potential re-rating catalysts for the trust, they say. Units are down 1.7% at US$0.114. (sherry.qin@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  July 20, 2023 00:14 ET (04:14 GMT)\n\n\n  Copyright (c) 2023 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.13","shortVersion":"4.35.13","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2352098667","isCrawlerRequest":true}