Manulife US REIT 55% Gearing: Why It Failed | Daily Digest — 31 March 2026 |🦖EP1516
Manulife US REIT 55% Gearing: Why It Failed | Daily Digest — 31 March 2026 |🦖EP1516
OUE REIT posts a 6.2% yield and clears my 4.7% forensic hurdle — but the balance sheet is still carrying 38.5% gearing against my 35% ceiling, and NAV per unit slipped from 58 cents to 56 cents while the DPU improved. That is not a recovery. That is a distribution built on a shrinking foundation. OUE Limited is worse: a 1.8% yield against three consecutive years of nine-figure losses driven by China associate exposure, while Manulife US REIT sold a Los Angeles tower at a loss and still sits at 55.3% pro-forma gearing — above the MAS 50% regulatory limit
In a world where the Singapore T-Bill is paying 1.46% for zero risk and CPF SA anchors at 4.0%, the 3.2% forensic floor plus 150 basis points risk premium is not optional — it is the minimum rent you charge for leaving sanctuary. Two of these three names cannot pay that rent. Yield printed on a screen and yield that survives a rate shock are not the same number.
📺 YouTube: https://youtu.be/Qnz9VntmCyE
📩 Substack: https://investingiguana.substack.com/p/daily-pulse-sgx-digest-31-march-2026
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.
