Manulife US Reit posts maiden DPU of 2.01 US cents, topping its IPO forecast by 5.8%

SINGAPORE - Manulife US Real Estate Investment Trust, which made its debut on the Singapore Exchange in May, reported maiden results that topped its forecast made during its initial public offer (IPO).

The Reit's distribution per unit (DPU) for the period from its listing date on May 20 to Sept 30 came in at 2.01 US cents, 5.8 per cent higher than its IPO forecast of 1.90 US cents.

Distributable income was 5.8 per cent higher than forecast at US$12.6 million (S$17.46 mililion), due mainly to higher net property income, lower interest expenses and other trust expense savings

Net property income was US$17.6 million, ahead of forecast by 1.5 per cent, due largely to lower property operating expenses. Gross revenue was 1.1 per cent below forecast due to lower recovery revenues.

Said Ms Jill Smith, chief executive officer of Manulife US Real Estate Management Pte Ltd: "We are delighted to present a strong set of results that validate the investment merits of Manulife US Reit which provides access to high quality office properties in key US markets. We outperformed our DPU by 5.8 per cent and our valuation increased by 4.6 per cent due to increased investment demand and favourable leasing activities.

"Despite the gloomy global macroeconomic outlook, the US real estate market remains a bright spot, attracting investors seeking yield and growth."

The manager said it aims to manage and enhance the assets proactively, as well as grow the portfolio by targeting acquisition of one asset per year.

During the reporting period, the Reit's portfolio's occupancy improved to 97.0 per cent based on committed leases with a weighted average lease expiry of 6.1 years.

The Reit also registered positive rental reversions of 8.5 per cent for the period Jan 1 to Sept 30.