Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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Manulife US REIT (MUST) / Equity Capital Markets

After being postponed in July 2015, <a href="https://www.smartkarma.com/entities/567" target="_blank" data-smartkarma-citation="entities:567">Manulife US REIT</a> has relaunched its IPO to raise US$470m.We analysed its listing plans last year - <a href="https://www.smartkarma.com/insights/ample-reasons-to-avoid-mediocre-growth-outlook-high-debt-and-no-ipo-discount-to-singapore-peers" target="_blank" data-smartkarma-citation="insights:995">Ample reasons to avoid - mediocre growth outlook, high debt and no IPO discount to Singapore peers</a>. The IPO was subsequently shelved. In this insight, I examine what has changed.

After being postponed in July 2015, Manulife US REIT has relaunched its IPO to raise US$470m.We analysed its listing plans last year - Ample reasons to avoid - mediocre growth outlook, high debt and no IPO discount to Singapore peers. The IPO was subsequently shelved. In this insight, I examine what has changed. 

Manulife US REIT IPO Relaunched: Several Issues Unresolved

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

Manulife US Real Estate (MUST) plans to raise US$420m to purchase three US office assets, and thus, become Singapore's first US office REIT.We would avoid the deal given: the underlying growth dynamics of the portfolio appear unexciting; owing to the small market cap and the cross-continents exposure, demand from property accounts might be limited; growth will likely be constraint by lack of ROFR and high gearing; past REIT listings in Singapore have been less than stellar, to say the least; and, the offering yield might be at a premium to US markets but is at similar level to Singapore office plays and hence, offers no real IPO discount.&nbsp;The main saving grace for the deal is the&nbsp;USD exposure, which given the weakening bent of SGD might be appealing to some investors.

Manulife US Real Estate (MUST) plans to raise US$420m to purchase three US office assets, and thus, become Singapore's first US office REIT.We would avoid the deal given: the underlying growth dynamics of the portfolio appear unexciting; owing to the small market cap and the cross-continents exposure, demand from property accounts might be limited; growth will likely be constraint by lack of ROFR and high gearing; past REIT listings in Singapore have been less than stellar, to say the least; and, the offering yield might be at a premium to US markets but is at similar level to Singapore office plays and hence, offers no real IPO discount.&nbsp;The main saving grace for the deal is the&nbsp;USD exposure, which given the weakening bent of SGD might be appealing to some investors.

Ample reasons to avoid - mediocre growth outlook, high debt and no IPO discount to Singapore peers

Singapore

Manulife US REIT is a Singapore listed REIT established with the investment strategy principally to invest, directly or indirectly, in a portfolio of income-producing office real estate in key markets in the United States, as well as real estate-related assets.

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Manulife US REIT (MUST) (MUST SP)

Manulife US REIT IPO Relaunched: Several Issues Unresolved

After being postponed in July 2015, Manulife US REIT has relaunched its IPO to raise US$470m.We analysed its listing plans last year - Ample...

Ke Yan, CFA, FRM

Ample reasons to avoid - mediocre growth outlook, high debt and no IPO discount to Singapore peers

Manulife US Real Estate (MUST) plans to raise US$420m to purchase three US office assets, and thus, become Singapore's first US office REIT.We...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)