0705 GMT - Manulife US REIT may be hit by its debt restructuring plan, DBS Group Research analysts say in a research report, as they downgrade the units to hold from buy with an unchanged target price of US$0.10. This plan comes at a hefty price to the REIT in terms of the roughly 10% effective interest rate on the loan from its sponsor, Manufacturers Life Insurance, and the REIT has also suspended distributions to unit holders until 2025, the analysts note. DBS now adopts a more cautious stance on the REIT in the long term, given suspension of distributions, uncertainty in recovery of U.S. office market, and execution risks. Units are 7.7% higher at US$0.056. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
December 01, 2023 02:05 ET (07:05 GMT)
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