- Mid-year Portfolio revaluation was done, and it declined by 14.6%to US$1,633.55 million, from US$1,913.5 million as of 31 Dec 2022. The large part of this is due to higher discount rates (as high as ~7%) and terminal cap rates (as much as 75 basis points) for certain properties, as well as continued weakening of occupancy performance (hence affecting discounted cashflow) across the U.S. office market.
- Based on this revaluation, the fair value of investment properties will be appropriately reflected in MUST’s 1H 2023 financial statements. MUST’s aggregate
Manulife Reits announced an important announcement this afternoon which was important yet dreaded by all unitholders of the company.
Unfortunately, this announcement was somewhat expected to come at some stage given how the office market continues to decline at today’s rate, so they just have to bite the bullet for it.
In any case, here are the summaries of the beef of the announcement along with the Q&A that I attended for easy reference:
