MUST’s portfolio includes the Phipps office building in Atlanta (Image: Manulife US REIT)
In today’s roundup of regional news headlines, SGX-listed Manulife US REIT receives analyst downgrades after reporting a worse-than-expected drop in portfolio valuation, and Korean investors reel from bad bets in global office markets. Also making the list are state-backed Chinese developers in debt trouble and Korean securities firms assessing property risks.
Analysts Downgrade Manulife US REIT on Portfolio Valuation Decline
Analysts have downgraded Singapore-listed Manulife US REIT after the trust’s portfolio valuation fell by 14.6 percent to $1.63 billion as of 30 June, down from $1.91 billion at the end of 2022.
The decline was much greater than expected, MUST CEO William Gantt said in a Tuesday call with media and analysts. Read more>>
Korean Investors’ Global Office Bet Unravels
A trip to the restaurant that sits atop the No.1 Poultry office block in London’s financial district is a chance to experience firsthand the Tale of Two Cities that’s upending the commercial real estate market.
From the vantage point of the Coq d’Argent you can gaze out at a forest of new skyscrapers that developers hope will bring in big rents and even bigger prices. For the South Korean owners of the older WeWork-occupied building down below, the future looks far bleaker. Read more>>
State-Backed Greenland, Sino-Ocean in Debt Payment Trouble
China state-backed developer Greenland Holdings has defaulted on a dollar bond worth $432 million due to a missed amortisation payment, according to sources familiar with the matter and a document viewed by Reuters on Wednesday.
The default adds to the debt woes plaguing the Chinese property sector, as more liquidity troubles have emerged in the past few weeks despite policy support. Read more>>
Financial Watchdog Gathers Korean Securities Firms to Talk Real Estate Risk
South Korea’s financial market watchdog gathered local securities firms Thursday to assess real-estate-related risks and urged thorough and pre-emptive preparation against them amid concerns that the number of overdue loans could rise.
The Financial Supervisory Service called on the firms, which are akin to investment banks, to swiftly write off or restructure non-performing loans to manage debt delinquency rates and accumulate enough capital for absorbing potential losses. Read more>>
Real Estate Woes Drive Billion-Dollar Hit for Goldman Sachs
It’s a tough time to be in the real estate business. That means Goldman Sachs is feeling some pain, too.
The bank isn’t the largest property lender, but it has more than $14 billion worth of real estate investments. Writedowns of those bets helped drive a $1.15 billion hit in the second quarter. Read more>>
Marina Bay Sands Q2 Net Revenue Grows 36% on Record Mass Gaming
Integrated resort Marina Bay Sands reached another record level of mass gaming revenue for the second quarter, as adjusted property earnings surpassed pre-COVID levels.
The relaxation of travel restrictions and rising flight capacity supported visits, enabling market recovery. But visits from China guests remained “well below” pre-pandemic levels, parent company Las Vegas Sands said Wednesday. Read more>>
Retail Podium at Singapore’s 183 Longhaus for Sale at S$35M Guide Price
The retail podium at mixed-use development 183 Longhaus has been put on the market via expression of interest. The guide price is S$35.1 million ($26.5 million) — S$3 million lower than its previous price tag.
The freehold property in Singapore’s Upper Thomson was put up for sale in March last year with a guide price of S$38 million. The tender closed a month later with no deal. Read more>>
Sabana REIT H1 DPU Up 1.3% on ‘Strong Operational Performance’
Sabana REIT posted a distribution per unit of S$0.0161 for the first half of its fiscal year ended 30 June, up 1.3 percent year-on-year, its manager said Wednesday.
Gross revenue for H1 was up 23.2 percent to S$55.3 million, mainly due to higher portfolio occupancy of 93.9 percent. Read more>>
Tune in again soon for more real estate news and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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