ANALYSTS SAY: Buy, Sell, Hold (10 May)

UOB KAYHIAN

Genting Singapore (GENS SP)
Earlier recovery but return to pre-COVID-19 levels unlikely

Maintain HOLD call and tweak TP to SGD0.86 (+2%)
With borders reopening earlier than expected, we raise our FY22E/FY23E earnings by 163%/123%. Yet, our FY24E earnings are barely changed (-2%) as we doubt gaming operations will recover to 100% of pre-COVID-19 levels. We tweak our DCF-based TP to SGD0.86 from SGD0.84. Maintain HOLD. We have also introduced an expanded ESG tear sheet for GENS and assigned it an above average overall score of 80, based on its aggregated
quantitative/qualitative/target-based metrics.

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Manulife US REIT (MUST SP)
US Office Recovery Underway Amid Challenging Outlook

For 1Q22, MUST’s overall portfolio occupancy dipped slightly to 91.7%. New leases formed 54% of total leases signed while about 68,000sf of leases were executed at +3.9% positive rental reversion. MUST continues to highlight its plans to capture demand from high-growth trade sectors such as tech and healthcare tenants. Maintain BUY with the same target price of US$0.80.

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CGS CIMB

MAYBANK KIM ENG

Manulife US REIT
Focus on portfolio resilience

■ MUST saw a dip in portfolio occupancy in 1Q22 but reversions improved qoq to +3.9%.
■ In the near-term, it is focusing on boosting leasing activity in addition to exploring inorganic growth opportunities.
■ Reiterate an Add rating with a lower DDM-based TP of US$0.86.

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Manulife US REIT (MUST SP)
Improving Reversion

Slow quarter, stronger rental outlook
MUST reported lower occupancy in 1Q22, and better rental reversion, with management staying with its guidance of a low-to-mid single-digit positive FY22 rental reversion. We see tailwinds from recovering US office fundamentals, but cut our DPUs by 3-4% on lower occupancies. DPU visibility remains high, cushioned by a 5.0-year WALE, low FY22-23E lease
expiries and quality tenancies. We see valuations as undemanding at c.8.9% FY22E yield, with deal upside, as management initiates capital recycling, while deepening its ‘high-growth’ sector AUM. Maintain BUY with a 5% lower DDM-based USD0.90 TP (COE: 7.8%, LTG: 2.0%).

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