Hi Huat. Yes in my opinion, I feel that the worse outcome will either delist or they will sell their good assets to the extent that their reits do not worth as much anymore. This situation is quite weird cause although they hit the leverage limit, they are given excuse cause their leverage limit was hit due to the huge drop their asset valuation. Thats why for me, it is important that they are able to attract new tenants to allow their properties to generate income else, expect their valuation to continue dropping.
Additionally, my concern is that there is no path to solving this from the management yet except their recent news where they say “to survive till 2025”. www.theedgesingapore.com/amp/news/reit-watch/manulife-us-reit-plans-stay-alive-till-25 Of course we will have to see how it progress. Currently I am not optimistic.
Honestly, I think reits prices in general are now quite attractive. I am siding to the more optimistic side that there is no final rate hike cause if you look at the US CPI data, on shelter(which is their housing + rental, it has a 6months lagging data vs actual data) is still contributing quite a lot. If that starts dropping in the next few months, expect cpi data to come in lower. The fed has also mentioned about ignoring the shelter since it is lagging so I am siding towards no more rate hikes. UNLESS their services inflation suddenly increase greatly which I feel it has a lower probability.
Honestly, it depends on your risk appetite and now fundamentals plays an even greater picture in times where stocks and reits are cheaper and opportunities are given to buy at a lower price.
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Hihi, what could be the worse outcome for manulife? Like they will be forced to delist since they are not complying to mas requirements?
Hi Huat. Yes in my opinion, I feel that the worse outcome will either delist or they will sell their good assets to the extent that their reits do not worth as much anymore.
This situation is quite weird cause although they hit the leverage limit, they are given excuse cause their leverage limit was hit due to the huge drop their asset valuation.
Thats why for me, it is important that they are able to attract new tenants to allow their properties to generate income else, expect their valuation to continue dropping.
Additionally, my concern is that there is no path to solving this from the management yet except their recent news where they say “to survive till 2025”.
www.theedgesingapore.com/amp/news/reit-watch/manulife-us-reit-plans-stay-alive-till-25
Of course we will have to see how it progress. Currently I am not optimistic.
Thanks for the reply and also for sharing so much in the video 😊
Welcome will try to share as much info 👍
Thinking of making a kore entry now what are your thoughts? Should i wait for the final rate hike?
Honestly, I think reits prices in general are now quite attractive. I am siding to the more optimistic side that there is no final rate hike cause if you look at the US CPI data, on shelter(which is their housing + rental, it has a 6months lagging data vs actual data) is still contributing quite a lot. If that starts dropping in the next few months, expect cpi data to come in lower.
The fed has also mentioned about ignoring the shelter since it is lagging so I am siding towards no more rate hikes. UNLESS their services inflation suddenly increase greatly which I feel it has a lower probability.
@@InvestingWithBen today was brutal for reits. Will sideline and wait first I guess🙏
Honestly, it depends on your risk appetite and now fundamentals plays an even greater picture in times where stocks and reits are cheaper and opportunities are given to buy at a lower price.