Manulife US REIT (BTOU) AI Stock Analysis

• Market Cap: $133.24M
• Dividend Yield: N/A
• Average Volume (3M): 5.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: -27.66%
• EPS Growth: -106.71%
• Country: SG
• Employees: 16
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.03
• Shares Outstanding: 1,776,565,400
• 10 Day Avg. Volume: 8,046,780
• 30 Day Avg. Volume: 5,483,630
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.79
• Enterprise Value/Revenue: 3.27
• Enterprise Value/Gross Profit: 6.69
• Enterprise Value/Ebitda: 6.26
• 1Y Price Target: $0.10
• Price Target Upside: 25.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: ―

Manulife US REIT's financial performance is currently weak due to declining revenues and persistent losses, with high leverage adding further financial instability. Technical indicators align with a bearish trend, and the company's valuation is unappealing given its negative P/E ratio and lack of dividend yield. Overall, the stock scores low due to these significant challenges.

Positive Factors

Asset Quality

The portfolio comprises Grade A office buildings located in key US cities, indicating high-quality assets.

Strategic Transition

Ongoing transition towards firmer footing with a strategic focus on deleveraging to bring financial metrics to more optimal levels.

Negative Factors

Distribution Uncertainty

Timing of resumption of distributions is uncertain, impacting investor confidence.

Financial Position

The financial position remains stretched, with a mixed operational outlook as some properties face challenges.

Market Conditions

Manulife US REIT is impacted by devaluations due to a reset in commercial values in the USA on the back of higher interest rates and rising market vacancies.

Manulife US REIT Business Overview & Revenue Model

Company Description

Manulife US Real Estate Investment Trust ("Manulife US REIT") is the first pure-play U.S. office REIT listed in Asia. It 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 ("U.S."), as well as real estate-related assets. Manulife US REIT's portfolio comprises nine prime, freehold and Trophy or Class A quality office properties strategically located in California, Atlanta, New Jersey and Washington D.C. Metro Area. The current portfolio valued at US$2.1 billion, has an aggregate Net Lettable Area of 4.7 million sq ft and an occupancy rate of 95.8% as at 31 December 2019.

How the Company Makes Money

Manulife US REIT generates revenue primarily through rental income derived from leasing office spaces to a diverse tenant base across its properties. The company benefits from long-term lease agreements that provide consistent rental income and occupancy stability. Additionally, the REIT may engage in strategic property acquisitions and divestments to optimize its portfolio and enhance returns. The company also leverages its relationship with the Manulife group for asset management expertise and potential acquisition opportunities, contributing to its financial performance.

Manulife US REIT Financial Statement Overview

Summary

Manulife US REIT faces significant financial challenges, with declining revenues and persistent losses impacting its income statement. The balance sheet shows high leverage and diminishing equity, raising concerns about financial stability. Cash flow management appears to be a relative strength, with positive free cash flow despite profitability issues.

Income Statement

Over the years, Manulife US REIT exhibited declining revenue with a negative revenue growth trend from 2020 to 2024. Gross profit margins have compressed significantly, and net income has been consistently negative, indicating challenges in profitability. EBIT and EBITDA margins have also suffered, with significant negative values in recent years, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reflects a relatively high debt-to-equity ratio, indicating leverage concerns. Stockholders' equity has decreased over time, reducing the equity ratio and return on equity. These factors suggest financial instability and increased risk, although the company maintains a reasonable amount of cash on hand.

Cash Flow

The cash flow statement shows that operating cash flow has been positive, though declining, and free cash flow has fluctuated. The free cash flow to net income ratio is not favorable due to negative net income in recent years, but the company has managed to generate positive free cash flow, which is a positive aspect.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	195.20M	167.58M	208.03M	202.56M	185.10M	194.31M
Gross Profit	95.47M	72.85M	114.61M	113.16M	109.55M	115.84M
EBITDA	102.01M	-129.47M	111.88M	-111.76M	55.48M	-26.36M
Net Income	-116.47M	-178.00M	-379.96M	-129.72M	39.41M	-43.28M
Balance Sheet
Total Assets	1.56B	1.22B	1.59B	2.12B	2.28B	2.09B
Cash, Cash Equivalents and Short-Term Investments	98.43M	65.24M	129.73M	112.86M	78.58M	86.67M
Total Debt	874.07M	745.95M	921.23M	1.03B	971.29M	852.29M
Total Liabilities	930.97M	794.03M	979.63M	1.10B	1.09B	930.17M
Stockholders Equity	624.49M	430.63M	608.63M	1.02B	1.19B	1.16B
Cash Flow
Free Cash Flow	27.01M	7.87M	32.35M	66.57M	60.65M	57.87M
Operating Cash Flow	65.12M	48.50M	76.82M	91.99M	90.63M	82.04M
Investing Cash Flow	56.30M	70.44M	86.58M	-25.37M	-230.93M	-24.01M
Financing Cash Flow	-178.71M	-176.07M	-171.57M	-32.37M	132.22M	-32.16M

Manulife US REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:BTOU, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 84.44 is Negative, neither overbought nor oversold. The STOCH value of 117.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:BTOU.

Manulife US REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ODBU	74 Outperform	$298.43M	10.44	6.49%	8.44%	-1.34%	-6.08%
Sector *	63 Neutral	$7.02B	13.41	-0.50%	6.86%	4.08%	-25.24%
CMOU	58 Neutral	$240.22M	―	-2.12%	24.56%	-1.55%	78.22%
BTOU	47 Neutral	$133.24M	―	-48.17%	―	-27.66%	-106.71%
OXMU	46 Neutral	$249.88M	90.95	0.38%	1.21%	-12.01%	―
XZL	―	$171.13M	―	-5.62%	―	―	―
LIW	―		―		―	―	―

Manulife US REIT Corporate Events

Manulife US REIT Faces Going Concern Uncertainty Amid Property Sales Target

Manulife US REIT has released its financial statements for the year ending December 31, 2024, which received an unqualified opinion with an emphasis on material uncertainty regarding its going concern status. This uncertainty stems from the requirement to sell certain properties to meet a net proceeds target of US$328.7 million by June 30, 2025, as part of a master restructuring agreement. The company has achieved 45% of this target and is actively pursuing sales, with potential buyers conducting due diligence. If necessary, the company can seek an extension of the deadline with lender approval.

Manulife US REIT Confirms Non-Applicability of US Withholding Tax

Manulife US REIT has announced that the Section 1446(f) Withholding Tax, which generally applies to non-US persons transferring interests in partnerships engaged in US trade or business, will not be applicable to its unitholders. This is due to the trust’s structure and the issuance of a Qualified Notice confirming it is not engaged in a US trade or business, thus exempting unitholders and brokers from withholding tax obligations and related US tax filing requirements.

Manulife US REIT Completes Redemption of Preferred Units for Secaucus Property

Manulife US REIT announced the redemption of all 115 outstanding preferred units by its indirect subsidiary, Hancock S-REIT SECA LLC, which previously held the property known as Plaza in Secaucus, New Jersey. The redemption, amounting to approximately US$0.1 million, was funded from internal resources and is not expected to significantly impact the trust’s net tangible assets or earnings per unit for the financial year ending December 31, 2025.