Manulife US REIT (BTOU) AI Stock Analysis

• Market Cap: $126.14M
• Dividend Yield: N/A
• Average Volume (3M): 5.37M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• 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: 5.06
• Enterprise Value/Revenue: 4.52
• Enterprise Value/Gross Profit: 9.99
• Enterprise Value/Ebitda: 8.93
• 1Y Price Target: $0.10
• Price Target Upside: 42.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by weak financial performance and negative valuation metrics. The company's high leverage and significant net losses are major concerns. Technical analysis also indicates bearish momentum, further impacting the score. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Flow Management

Positive free cash flow indicates effective cash management, providing the company with liquidity to meet obligations and invest in growth opportunities.

Operational Efficiency

Strategic partnerships and affiliations enhance operational efficiency, potentially leading to cost savings and improved property management, benefiting long-term performance.

Tenant Diversification

Diverse tenant base with long-term leases reduces risk of vacancy and ensures stable rental income, supporting consistent cash flow and financial stability.

Negative Factors

Declining Revenue

Persistent revenue decline signals potential challenges in market demand or competitive positioning, impacting long-term growth prospects and financial health.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth or weather economic downturns, affecting long-term stability.

Profitability Challenges

Consistent negative net income highlights operational inefficiencies and profitability challenges, which can hinder the company's ability to generate sustainable returns.

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 its portfolio of office properties. The trust leases space to a variety of tenants, including multinational corporations and government entities, on long-term leases that provide a steady cash flow. Additional revenue can be generated through property management fees and potential increases in rental rates as market conditions improve. The trust's strategic partnerships with property management firms and its affiliation with Manulife Investment Management further enhance its operational efficiency and investment opportunities. Furthermore, the trust benefits from favorable leasing terms, tenant retention strategies, and the ability to capitalize on emerging market trends, which all contribute to its earnings.

Manulife US REIT Financial Statement Overview

Summary

Manulife US REIT is facing 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	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: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.50 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$299.70M	10.33	6.49%	8.40%	-1.34%	-6.08%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CMOU	61 Neutral	$229.78M	―	-2.12%	24.56%	-1.55%	78.22%
OXMU	48 Neutral	$267.37M	88.57	0.38%	1.89%	-12.01%	―
BTOU	43 Neutral	$126.14M	―	-48.17%	―	-27.66%	-106.71%

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.