Monday, February 8, 2021

Manulife REIT - Full Year 2020 Results & Analyst Briefing

Manulife REIT announced its Full Year 2020 Financial Results this morning and at the same time held an analyst briefing to which I was invited.

The setting was nicely done - it was in a large conference room where there are ample seats for social distancing and a clear view of the presentation.

All of the attendees were given a box of pineapple tarts as well as red packets to commemorate the upcoming Chinese New Year ahead. Thank you to the team for the surprise gifts.

Jill kicked off to give a presentation before the Q&A open floor session.

I'll try to provide more colors on what was discussed during the briefing as detailed as I could.

Like many investors, I am somewhat disappointed when I found out that DPU for Q4 was down by a massive 11.3% as compared to the previous year despite having higher GR, NPI, and DI for the quarter and the year due to the acquisitions made.

The drop in Q4 was mainly due to i.) Lower Carpark Income, ii.) Lower Rental Income due to the higher vacancies in Michelson and Peachtree, and iii.) Provision for credit losses.

On the provision for credit losses, the CFO mentioned that they are being prudent by provisioning for a one-off but these are not actual losses and could be reversed in the upcoming quarters. He then shared an update that just last week one of the tenants that they have provisioned for has paid all the rent in arrears so they would be reversing in the upcoming quarter.

He also shared that should these provisions be halved, the DPU would actually be approximately the same as FY2019. 

My thought on this is the company is just being prudent with the policy and if the recoverable plan is done properly, these will just be a matter of timing essence where investors get to reap the benefits of higher DPU due to one-off in FY2021.

With gearing rising to as high as 41% after the financial year ended 31 December 2020, there is naturally a concern among investors and fellow analysts out there.

The management is adamant and believes that their balance sheet remains financially solid and they have further debt room of about $375m before reaching the cap set by MAS. Furthermore, the CAPEX level is expected to remain similar this year and they also had a revolving facility which they can tap on.

Knowing the management practice for quite some time now, they'd look prudently for yield accretive acquisitions which is likely to be funded more by equity.

This brings us next to the topic of acquisitions.

Jill shared that they are looking for potential yield accretive acquisitions from the West all the way to the East Coast, and has also considered Business Park as their next go-to asset class.

One analyst questioned if the diversification into Business Park will make downgrade Manulife and change the company's vision into moving into other types of properties.

The management then shared that the business park in the US is unlike the business park that we have in Singapore, which usually tends to cater more towards industrial and logistics. In the US, the business park occupancy tenant can fill in the likes of financial institutions such as Meryl Lynch, and also tech company with the likes of Google. They may not be necessarily restricted to a particular set of industry classes.

My first thought on this is they must have started looking at this as a means to give them a wider choice of a pipeline, especially given that most of the US properties cap rates are in between 6-7% and Manulife itself is trading at a yield of 7.8%, it will be more difficult to look at Grade A yield accretive acquisitions if you are just limiting yourself to office play. Plus, with the gearing at 41%, it will not be easy to fund the deals with debt, which gives you a lesser choice of play from the management's point of view.

There were a few discussions on the occupancies of some locations but the overall intake that I get from the discussion is that not many tenants are willing to commit to longer-term lease (note rules in the US they cannot break lease), which MUST see it sort of an opportunity because they could then also wait for the pandemic to play out, then secure a better rental reversion once vaccines are rolled out in the 2nd half of the year and outlook looks better.

As an investor myself, I think I was overall pleased with how the management is always trying to remain transparent and provide more value to investors. If I had to be very skeptical about some things, it would be because the external factors such as US Treasury Yield going up is not within their control, and they could catch themselves trying to get potential acquisitions in 2021 venturing into new territories such as the Business Park which many investors in Singapore (including myself) are not familiar with.

The management would nevertheless ensure that any deals made would be value-adding to both the REIT and investors so this is one aspect that I think investors can rely on while keeping a closer look at further development.

Thanks for reading.

If you like our articles, you may follow our Facebook Page here.
You may also follow our newly created Instagram Page here.


  1. Hi Brian, many thanks for sharing the above...appreciate! Glad to hear the good news on potential new acquisition target of US Business Park. Hope the bad debt provision will no longer be required.

  2. Lousy reit. Stay away.

  3. Hello, come to serve erotic pleasure by the best escorts in Greater Kailash. They should visit our escort agency once to get rid of their desire for sex all their life. Our agency has the highest number of escort women in Greater Kailash. Our Greater Kailash escorts can outline your sexual pleasures by women. Fulfill your desire for fun with Greater Kailash Escorts Agency by High Ladies Agency. Spending a few moments with our women can give you a real pleasure
    Greater kailash escorts

  4. I was once a victim of online scam. I was hacked with two factor identification authorisation .
    Hackers sold my coins for Bitcoin and stole my whole account. I lost $17000.00 US / 3.589 Btc . This was 21 days ago and Bittrex support have asked me to do 4 ticket updates run by automation. without a word from anyone. Very dissapointing service support. Bittrex is not safe from hackers.
    I have reported the issue to the relevant authorities. Cyber crime in Austria and the USA.
    If you value your cryptocurrency, you should be careful with some of these investment platforms.
    Bittrex was hacked and Bittrex allowed scammers to hack my account !!!!! i had a bad experience and That is unfair. All thanks to webghost33/at/cyberservices/com .They helped me to recover my lost funds. If need such help,
    text whatsapp 1 414 909 3913

  5. Halo
    Semuanya saya Ibu SAFRILITA dari INDONESIA, ALLAH telah memberkati saya dengan dua anak dan seorang suami yang penuh kasih, saya ingin berbagi Kesaksian karena ALLAH menyukai saya, setahun yang lalu saya sangat membutuhkan uang jadi saya berpikir untuk meminjam lalu saya bertemu orang yang salah yang mengaku sebagai pemberi pinjaman, tidak tahu bahwa mereka semua adalah penipuan. Saya SCAMMED 25 juta, dan mereka menolak untuk mentransfer pinjaman saya kepada saya, mereka juga berhenti mengirim email kepada saya sejak itu. lalu saya bingung, seluruh hidup saya hilang.

    suami saya sakit dan ada tagihan rumah sakit yang harus dibayar jutaan, yang bisa saya pikirkan saat ini adalah sucide, teman saya bernama Evi datang menemui saya hari yang setia itu, dia juga menjadi korban penipuan, dia memberi tahu saya tentang sebuah Konferensi yang di selenggarakan oleh ibu Nurliana Novi untuk memberdayakan perempuan dan laki-laki yang berkehendak menjadi kaya, dia meminta adiknya untuk membantu saya menjaga suami dan anak-anak saya, maka kami pergi ke konferensi ulang.

    Setelah semua pembicaraan tentang motivasi, dia mengajukan sebuah pertanyaan kepada kami "APAKAH ANDA SIAP MENGAMBIL RISIKO DAN MENDAPATKAN KEKAYAAN" dengan keberanian di jemaat kecil itu saya berdiri dan berkata "YA" dan kami semua diminta untuk datang keesokan harinya dengan sebuah rencana bisnis , dia berkata kepada kami, "AKU TIDAK AKAN MEMBERIKAN UANG, AKU AKAN MENGAJARMU CARA MENGAMBIL RISIKO DAN MENDAPATKAN UANG UNTUK BISNIS ANDA," dia berbicara tentang bagaimana dia mendapatkan pinjaman dan koneksinya melalui ibu yang hebat ELINA JOHNSON GLOBAL LOAN FIRM, sebuah perusahaan pinjaman online, seketika saya menjadi takut, teman saya mendorong dan kami menghubungi perusahaan ibu Elina, seperti yang diarahkan oleh ibu nurliana novi dari konferensi, teman saya dan saya mulai memproses sementara ibu novi telah kembali, beberapa hari kemudian saya menerima telpon dari teman saya memberitahu saya dia mendapat notifikasi dari banknya, pinjamannya sudah di depositkan, sudah telat jadi saya tidak bisa ke bank saya untuk konfirmasi, pagi harinya ada peringatan, akhirnya saya dapat pinjaman 843 juta dari ibu ELINA JOHNSON GLOBAL LOAN FIRM, setelah mengikuti proses hukum.
    kami diberikan arahan untuk menyampaikan business plan kami dan menitipkan uang di bank selama seminggu, kemudian ibu novi menelpon meminta kami untuk bertemu kembali yang kami patuhi, kami sampai di venue dan melihat dampak asing pada perdagangan dan investasi, kami diberikan kuliah dan kontak untuk memulai investasi, dalam enam bulan melalui koneksi ibu Elina saya mulai mengimpor dan hari ini saya dan suami saya telah mendirikan dua perusahaan besar bernilai MILIAR.

    Saya ingin Anda semua tahu bahwa satu-satunya pemberi pinjaman sejati yang saya saksikan adalah ibu ELINA JOHNSON GLOBAL LOAN FIRM, hubungi mereka hari ini dan Anda akan mendapatkan perubahan positif dalam hidup Anda, ini emailnya Anda dapat menghubungi saya di email saya, untuk konfirmasi lebih lanjut, jika Anda meragukan saya, saya siap menunjukkan kepada Anda semua bukti sehingga Anda akan tahu ini bukan hanya sebuah cerita.

    Perhatikan, mereka banyak pemberi pinjaman palsu online untuk menipu Anda, merampok Anda dari uang hasil jerih payah Anda, harus dari mereka sampai ke tingkat membuat situs web pribadi mereka hanya untuk menipu Anda, pinjaman yang mengarahkan Anda untuk mengunjungi situs web palsu, mereka semuanya adalah penipu.

    Jadi hubungi perusahaan ibu Elina sekarang dan pinjaman Anda akan ditransfer kepada Anda saat Anda mengikuti proses yang seharusnya, sekali lagi ini adalah emailnya, ALLAH melihat hati saya dan dia tahu saya mengatakan yang sebenarnya dan tidak lain adalah kebenaran .

  6. Office might be in trouble this year

  7. PSEB 12th Computer Science Sample Paper 2021 PSEB 12th Humanities Model Paper PSEB 12th Mathematics Model Paper PSEB 12th Class Previous Year Question Papers PSEB 12th History Model Paper. Here we are Providing you PSEB 12th Class Sample Paper 2021 Model Papers 2021 And Some Other Reference 2021 So That you Can Enhance Your Exam Preparation. Aside From This 2021 You Can Also Download PSEB HS Question Paper 2021 12th Class PSEB Sample Paper 2021 PSEB 10th Model Question Papers 2021 PSEB 10th Question Paper 2021 PSEB 12th Class sample Paper 2021 PSEB 12th Model Papers 2021 PSEB 12th Sample Papers 2021 PSEB Last Year Papers 2021 PSEB Model Paper 2021 PSEB Old Question Paper 2021 PSEB Sample Paper 2021.

  8. So take a pick from any of our beautiful girls that are sure to break the monotony of experiencing the same sensual taste over and over again. Add spice to your life today.

    What a Jaipur call girl is:
    Instant date that is nothing short of sexy and seductive
    Travel companion, tour guide, dinner date, arm candy and sex partner
    Talented, offering full escort service
    Treat her right and she will treat you the only way she knows how – blow your mind
    What a Jaipur Call girl is not:
    A woman looking or demanding for commitment
    A date that offers no certainty as to where or how the night will end – your way, her way or separate ways
    A woman who needs to be wooed, and showered with gifts, attention and affection
    A woman who brings family and friends into the relationship

    Clearly, hiring Jaipur Call Girls trumps traditional dating where enjoyment and hassle-free loving are concerned.

    plz visit:

  9. Karnataka board will release the 2nd PUC result 2021 one month after the conclusion of examinations. Students can check their Karnataka 2nd PUC result Karnataka 2nd PUC Result 2021 Students can also make use of the direct link given on this page to download their PUC results 2021.

  10. While investing in bitcoins, be cautious. If your bitcoin gets stolen, then it can be a very frustrating time but instead of getting frustrated, it is important to act fast so that you can get your money back. Unluckily, there are many victims that do not get their money back because it is very hard to track down the people behind it. The thief is either in another country or using fake identities. But in some cases, it is easy to track the person who has stolen your bitcoin. Tracing bitcoin is not hard for bitcoin forensics or specialists. You can reach out to Fightingscams (AT) aol DT com for more enquiries. They also assist in recovering funds lost to scam brokers.

  11. BADI9 provides all the breaking news, celebrity Gossips, Movie Reviews, Education Resources, careers, Gadgets, Economy, Social and Paper media, and many more. The main concept or our aim behind this website has been the will to provide resources full information on each topic which can be accessed through the Internet. To ensure that every reader gets what important and worthy about the topic they search and link to hear from us.