Manulife US REIT (BTOU) AI Stock Analysis

• Market Cap: $129.69M
• Dividend Yield: N/A
• Average Volume (3M): 5.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• 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: 1,731,870
• 30 Day Avg. Volume: 5,368,633
• PEG Ratio: 0.02
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 20.10
• Enterprise Value/Market Cap: 4.92
• Enterprise Value/Revenue: 4.52
• Enterprise Value/Gross Profit: 9.99
• Enterprise Value/Ebitda: 8.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $0.07 ▼(-12.50% Downside)

The overall stock score is primarily impacted by weak financial performance, characterized by declining revenue, substantial net losses, and high leverage. Technical analysis indicates bearish momentum, and valuation metrics are unfavorable due to negative profitability and lack of dividends. These factors collectively result in a low overall stock score.

Positive Factors

Cash Flow Generation

Improved cash flow generation indicates efficient operations and provides the company with more flexibility to manage debt and invest in growth.

Operational Efficiency

Positive EBIT and EBITDA margins reflect the company's ability to manage costs effectively, which is crucial for sustaining profitability in the long term.

Tax Structure Advantage

The exemption from US withholding tax enhances investor returns and simplifies tax compliance, making the trust more attractive to investors.

Negative Factors

High Leverage

Significant leverage increases financial risk, potentially impacting the company's ability to withstand economic downturns and limiting future borrowing capacity.

Declining Revenue

Decreasing revenue suggests challenges in maintaining tenant occupancy or rental rates, which could impact future cash flow and profitability.

Negative Profitability

Substantial net losses indicate ongoing profitability challenges, which could hinder the company's ability to reinvest in its properties and grow its portfolio.

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 from its portfolio of commercial properties. The trust leases office spaces to a diverse range of tenants, including multinational corporations and government entities, ensuring a steady stream of cash flow. Additionally, the company benefits from property appreciation over time, which can enhance overall returns for its investors. Key revenue streams include leasing agreements, property management fees, and potentially ancillary income from services provided to tenants. The trust's strategic partnerships with real estate firms and local market experts also contribute to its ability to identify and acquire high-quality assets, thereby supporting its earnings.

Manulife US REIT Financial Statement Overview

Summary

Manulife US REIT faces significant financial challenges with declining revenue and substantial net losses. While operational efficiency is evident from positive EBIT and EBITDA margins, high leverage and negative return on equity pose risks to financial stability. Improved cash flow generation is a positive sign, but overall financial health remains weak.

Income Statement

The income statement shows declining revenue with a negative revenue growth rate of -8.54% in the TTM period. Gross profit margin is moderate at 45.23%, but the net profit margin is significantly negative at -171.69%, indicating substantial losses. EBIT and EBITDA margins are positive, suggesting operational efficiency, but overall profitability is severely impacted by high net losses.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.54 in the TTM period, indicating significant leverage. Return on equity is negative, reflecting ongoing losses. The equity ratio is not explicitly calculated, but the high leverage suggests potential financial instability.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 27.42% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.83, suggesting decent cash flow relative to net losses. However, the free cash flow to net income ratio is 1.0, highlighting reliance on cash flow to cover losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	141.21M	167.58M	208.03M	202.56M	185.10M	194.31M
Gross Profit	63.87M	72.85M	106.77M	113.16M	100.99M	115.84M
EBITDA	71.46M	-129.47M	96.23M	-111.76M	114.04M	104.03M
Net Income	-242.43M	-178.00M	-379.96M	-129.72M	39.41M	-43.28M
Balance Sheet
Total Assets	1.02B	1.22B	1.59B	2.12B	2.28B	2.09B
Cash, Cash Equivalents and Short-Term Investments	66.88M	65.24M	129.73M	114.13M	78.58M	86.67M
Total Debt	587.84M	745.95M	921.23M	1.03B	971.29M	852.29M
Total Liabilities	635.20M	794.03M	979.63M	1.10B	1.09B	930.17M
Stockholders Equity	382.06M	430.63M	608.63M	1.02B	1.19B	1.16B
Cash Flow
Free Cash Flow	33.70M	7.87M	32.35M	66.57M	60.65M	57.87M
Operating Cash Flow	33.70M	48.50M	76.82M	91.99M	90.63M	82.04M
Investing Cash Flow	230.52M	70.44M	86.58M	-25.37M	-230.93M	-24.01M
Financing Cash Flow	-285.63M	-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: Neutral
• STOCH: Neutral

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 0.08, above the 50-day MA of 0.08, and above the 200-day MA of 0.07, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.60 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, 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
MXNU	70 Neutral	£219.70M	14.40	6.30%	8.48%	-9.87%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ODBU	64 Neutral	$308.79M	10.65	6.49%	8.23%	-1.34%	-6.08%
OXMU	57 Neutral	$287.49M	95.24	0.38%	2.39%	-12.01%	―
XZL	53 Neutral	$150.83M	―	-5.62%	5.16%	-6.01%	-36.46%
CMOU	51 Neutral	$245.45M	-15.77	-2.12%	―	-1.55%	78.22%
BTOU	46 Neutral	$129.69M	-0.54	-48.17%	―	-27.66%	-106.71%

Manulife US REIT Corporate Events

Manulife US REIT Unveils Strategic Growth and Value Plan

Manulife US Real Estate Investment Trust has announced its Growth and Value Up Plan, which includes a Disposition Mandate to sell up to three properties and raise up to US$350 million, and an Acquisition Mandate to invest up to US$600 million, both starting January 2026. Additionally, the company has secured concessions from lenders, extending the disposal deadline to June 2026, which is expected to enhance its financial flexibility and support long-term growth.

Manulife US REIT Secures Lease Renewal with US Treasury

Manulife US Real Estate Investment Trust (MUST) has secured a two-year lease renewal with its fifth largest tenant, the US Treasury, for approximately 120,000 square feet of space at its Washington, D.C. office property, Penn. This renewal, which maintains existing rent rates, extends the property’s weighted average lease expiry and provides greater cash flow certainty for MUST amid challenges in the Washington, D.C. office market. The decision aligns with the federal government’s push for employees to return to the office, potentially boosting demand in the city.

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 transfers by non-US persons of interests in partnerships engaged in a US trade or business, is not applicable to its unitholders. This is due to the trust’s structured status as not being engaged in a US trade or business, as confirmed by a Qualified Notice. Consequently, unitholders and brokers are not required to withhold this tax, nor are unitholders required to file a US federal income tax return or obtain a US tax identification number solely due to these rules.