SGX:BTOU

Stock Analysis Report

Manulife US Real Estate Investment Trust

Executive Summary

Manulife US Real Estate Investment Trust (“Manulife US REIT”) is the first pure-play U.S.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Manulife US Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BTOU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

BTOU

-1.1%

SG REITs

-2.0%

SG Market


1 Year Return

20.2%

BTOU

12.3%

SG REITs

-4.8%

SG Market

Return vs Industry: BTOU exceeded the SG REITs industry which returned 13.6% over the past year.

Return vs Market: BTOU exceeded the SG Market which returned -3.7% over the past year.


Shareholder returns

BTOUIndustryMarket
7 Day-2.9%-1.1%-2.0%
30 Day-1.0%-1.4%-3.4%
90 Day4.7%1.8%-2.6%
1 Year28.3%20.2%19.0%12.3%-1.0%-4.8%
3 Year59.2%20.2%49.0%23.7%7.5%-3.9%
5 Yearn/a56.7%13.1%7.7%-10.5%

Price Volatility Vs. Market

How volatile is Manulife US Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Manulife US Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

26.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BTOU ($1.02) is trading below our estimate of fair value ($1.36)

Significantly Below Fair Value: BTOU is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BTOU is poor value based on its PE Ratio (30x) compared to the REITs industry average (15x).

PE vs Market: BTOU is poor value based on its PE Ratio (30x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: BTOU is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: BTOU is overvalued based on its PB Ratio (1.3x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is Manulife US Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

18.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BTOU's forecast earnings growth (18.5% per year) is above the savings rate (1.8%).

Earnings vs Market: BTOU's earnings (18.5% per year) are forecast to grow faster than the SG market (5.5% per year).

High Growth Earnings: BTOU's earnings are forecast to grow, but not significantly.

Revenue vs Market: BTOU's revenue (6.3% per year) is forecast to grow faster than the SG market (5.4% per year).

High Growth Revenue: BTOU's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BTOU's Return on Equity is forecast to be low in 3 years time (7.2%).


Next Steps

Past Performance

How has Manulife US Real Estate Investment Trust performed over the past 5 years?

2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BTOU has high quality earnings.

Growing Profit Margin: BTOU's current net profit margins (26.7%) are lower than last year (44.6%).


Past Earnings Growth Analysis

Earnings Trend: BTOU's earnings have grown by 2.7% per year over the past 5 years.

Accelerating Growth: BTOU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BTOU had negative earnings growth (-26.3%) over the past year, making it difficult to compare to the REITs industry average (2.6%).


Return on Equity

High ROE: BTOU's Return on Equity (3.8%) is considered low.


Next Steps

Financial Health

How is Manulife US Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BTOU has a high level of physical assets or inventory.

Debt Coverage by Assets: BTOU's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: BTOU's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BTOU has a sufficient allowance for bad loans.

Low Risk Liabilities: BTOU reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BTOU has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BTOU has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BTOU has an appropriate level of bad loans.


Next Steps

Dividend

What is Manulife US Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

5.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BTOU's dividend (5.84%) is higher than the bottom 25% of dividend payers in the SG market (2.69%).

High Dividend: BTOU's dividend (5.84%) is in the top 25% of dividend payers in the SG market (5.66%)


Stability and Growth of Payments

Stable Dividend: BTOU has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BTOU's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (115.3%), BTOU's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BTOU's dividends in 3 years are not forecast to be well covered by earnings (106.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.3yrs

Average management tenure


CEO

Jill Smith (65yo)

Ms. Jillian Avis Kathryn Smith, also known as Jill, serves as Chief Executive Officer of Manulife US Real Estate Management Pte. Ltd., the manager of Manulife US Real Estate Investment Trust. Ms. Smith ser ...


Leadership Team

NamePositionTenureCompensationOwnership
Jillian Avis Kathryn Smith
Chief Executive Officer of Manulife US Real Estate Management Pte. Ltd.0yrsno datano data
Teck Ling Wong
Chief Financial Officer of Manulife US Real Estate Management Pte. Ltd.0.3yrsno datano data
Jennifer Schillaci
Chief Investment Officer of Manulife US Real Estate Management Pte. Ltd.2.1yrsno datano data
Caroline Fong
Head of Investor Relations - Manulife US Real Estate Management Pte. Ltd0yrsno datano data
Daphne Chua
Head of Compliance - Manulife US Real Estate Management Pte. Ltd.0yrsno datano data
Chia Choong
Financial Controller of Manulife US Real Estate Mgmt. Pte Ltd0yrsno datano data
May Ling Ngiam
Company Secretary of Manulife US Real Estate Management Pte. Ltd.0.2yrsno datano data

0.3yrs

Average Tenure

46yo

Average Age

Experienced Management: BTOU's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Blewitt
Non-Executive Director1yrsno datano data
Kian Koon Choo
Independent Non-Executive Director of Manulife US Real Estate Management Pte. Ltd.2.7yrsUS$46.43kno data
Michael Dommermuth
Non-Executive Director of Manulife US Real Estate Management Pte. Ltd.4.9yrsno datano data
Tsun-Yan Hsieh
Chairman of the Board of Manulife US Real Estate Management Pte. Ltd.0yrsUS$85.00k0.063% $1.0m
Chun Wah Lau
Lead Independent Director of Manulife US Real Estate Management Pte. Ltd.0yrsUS$80.00kno data
Veronica Julia McCann
Independent Non-Executive Director of Manulife US Real Estate Management Pte. Ltd.4.7yrsUS$85.00k0.028% $452.2k
Cher Chiew Koh
Independent Non-Executive Director of Manulife US Real Estate Management Pte. Ltd.0.3yrsno datano data

2.7yrs

Average Tenure

61.5yo

Average Age

Experienced Board: BTOU's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.4%.


Top Shareholders

Company Information

Manulife US Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Manulife US Real Estate Investment Trust
  • Ticker: BTOU
  • Exchange: SGX
  • Founded:
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: US$1.600b
  • Shares outstanding: 1.57b
  • Website: https://www.manulifeusreit.sg

Number of Employees


Location

  • Manulife US Real Estate Investment Trust
  • No. 16-03, Manulife Tower
  • 8 Cross Street
  • Singapore
  • 48424
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BTOUSGX (Singapore Exchange)YesUnitsSGUSDMay 2016

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 13:08
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.