Shortly after I had posted my previous write up, ManuLife announced a dreaded news that it has written down 10.9% of its asset value and is now at 49% leverage ratio, just shy of breaching the MAS regulatory limit of 50%.

The other 2 who has not announced the dreaded news are PRIME and Keppel (KORE). On context, the gearing for PRIME and KORE are 38.7% and 37.5% respectively. In my view, KORE is likely to report the larger of the writedown and PRIME will become the lowest leveraged (and probably the safest US office REIT). Below is the main reason

Keppel has higher concentration risk in one city, that is not doing well

Source: KORE AR (see page 65)

49% of KORE's asset value are concentrated in the city of Seattle. Among the cities, Seattle is not part of the sunbelt cities witnessing a resumption of return to office and