Singapore Property Analyst

Anni Kum

Equity Bottom-Up

Manulife US REIT (MUST) / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/567" target="_blank" data-smartkarma-citation="entities:567:1" rel="noopener">Manulife Us Reit (MUST SP)</a> announced this morning that it has entered into a purchase agreement to acquire a freehold 29-storey Class A office building located at 400 Capitol Mall, Sacramento, California for an estimated aggregate purchase consideration of US$198.8 million.400 Capitol is a high-quality asset with defensive attributes and growth opportunity. The acquisition will also help to strengthen MUST's portfolio.To finance the acquisition, MUST has announced an equity fundraising comprising an offering of new units in MUST to raise gross proceeds of approximately US$142.1 million. The balance acquisition cost shall be funded by loans.The Acquisition is expected to be both DPU and NAV accretive to the Unitholders. The pro forma aggregate leverage ratio as at 30 June 2019 is expected to improve from 37.1% to 36.6%. This will provide debt headroom of approximately US$123.3 million.The possibility of MUST’s inclusion in the FTSE EPRA Nareit Developed Asia Index can be a positive re-rating catalyst for MUST.

Manulife Us Reit (MUST SP) announced this morning that it has entered into a purchase agreement to acquire a freehold 29-storey Class A office building located at 400 Capitol Mall, Sacramento, California for an estimated aggregate purchase consideration of US$198.8 million.400 Capitol is a high-quality asset with defensive attributes and growth opportunity. The acquisition will also help to strengthen MUST's portfolio.To finance the acquisition, MUST has announced an equity fundraising comprising an offering of new units in MUST to raise gross proceeds of approximately US$142.1 million. The balance acquisition cost shall be funded by loans.The Acquisition is expected to be both DPU and NAV accretive to the Unitholders. The pro forma aggregate leverage ratio as at 30 June 2019 is expected to improve from 37.1% to 36.6%. This will provide debt headroom of approximately US$123.3 million.The possibility of MUST’s inclusion in the FTSE EPRA Nareit Developed Asia Index can be a positive re-rating catalyst for MUST.

Manulife US REIT (MUST SP): Expansion into Sacramento with 400 Capitol Acquisition