Manulife US Reit's DPU 7.5% above projection

Manulife US Real Estate Investment Trust, the first pure-play US office Reit listed in Asia, announced yesterday a distribution per unit (DPU) of 1.58 US cents for the second quarter ended June, 7.5 per cent higher than it projected.

The Reit, which gained its Singapore listing in May last year, recorded net property income of US$12.8 million (S$17.4 million), which was 3.7 per cent above projection, while gross revenue at US$19.1 million was 0.3 per cent below projection due to lower recoveries income.

This was partially offset by higher rental and other income, mainly arising from rental escalations and higher carpark income.

For the first half-year, it achieved DPU of 3.23 US cents, 8 per cent higher than projected, on net property income of US$25.6 million and revenue of US$39.7 million. As at June 30, the Reit's portfolio valuation grew 2.8 per cent over the half-year to US$857.5 million.

With a high occupancy rate of 95.9 per cent based on committed leases, weighted average lease expiry of 5.3 years and limited percentage of leases expiring in 2017, the Reit manager said it expects the portfolio to deliver a stable performance.

Market conditions continue to be generally favourable in the three markets that Manulife US Reit has invested in, with minimal new supply and rising market rents, it said.

  • AT A GLANCE

  • Q2 REVENUE: US$19.1 million (-0.3%)

  • Q2 NET PROPERTY INCOME: US$12.8 million (+3.7%)

  • Q2 DISTRIBUTION PER UNIT: 1.58 US cents (+7.5%)

"During this period, we announced our maiden acquisition of 500 Plaza located in New Jersey," said Manulife US Real Estate Management chief executive Jill Smith.

"This acquisition demonstrates growth and scalability, and will start to contribute from the third quarter of 2017 onwards."

Separately, the Reit said it had entered into a loan agreement with Wells Fargo Bank, National Association, for an aggregate principal amount of up to US$51.6 million, secured partly by a first mortgage on the 500 Plaza property.

Manulife Reit units yesterday rose half a cent to 92.5 US cents.

A version of this article appeared in the print edition of The Straits Times on August 09, 2017, with the headline 'Manulife US Reit's DPU 7.5% above projection'. Print Edition | Subscribe