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RHB lowers Manulife US REIT’s TP to 6 US cents after FY2025 financials below expectations

Felicia Tan
Felicia Tan • 2 min read
RHB lowers Manulife US REIT’s TP to 6 US cents after FY2025 financials below expectations
Michelson, one of MUST's properties. Photo: MUST
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RHB Bank Singapore analyst Vijay Natarajan is remaining “neutral” on Manulife US REIT (MUST) even though the REIT’s FY2025 stood below expectations.

For the 12 months ended Dec 31, 2025, MUST reported gross revenue of US$113.9 million ($145.7 million), 32% lower y-o-y.

Net property income (NPI) fell by 33.4% y-o-y to US$53.2 million.

Income available for distribution also fell by 33.2% y-o-y to US$25.5 million, translating to a distribution per unit (DPU) of 1.44 US cents, 33% lower y-o-y.

As at December 2025, MUST reported a 1.6% y-o-y decline in portfolio valuations, which are said to be “bottoming out”.

At its results call on March 19, MUST’s CEO John Casasante shared that the REIT was in active discussions to sell Figueroa at a slight discount to its latest valuation of US$98 million.

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If successful, the move would enable the REIT to repay its remaining debt of around US$56 million under its Master Restructuring Agreement (MRA) ahead of its June deadline.

MUST also plans to divest two more assets, which are likely to take place by the end of the year. “These assets are likely to come from Tranche 1 & 2 of its portfolio, which are considered more challenging and capex-intensive,” says Natarajan.

Part of the proceeds from these divestments will likely be used to acquire industrial, living sector, and retail assets across the US and Canada under MUST’s new mandate. MUST also believes its sponsor’s large North American real estate portfolio and network can aid in a successful portfolio pivot, the analyst notes.

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Natarajan’s new target price is pegged at a revised FY2026 book value multiple of 0.3 times as he does not expect dividend payments to be made in the near term.

“Note that our estimates are based on MUST’s current portfolio, and are therefore subject to revisions as MUST executes its revamped growth strategy,” he says.

As at 10.55am, units in MUST are trading 0.1 US cent lower or 1.67% down at 5.9 US cents.

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