SINGAPORE - - Manulife US Real Estate Investment Trust, the first pure-play US office Reit listed in Asia, announced on Tuesday (May 2) a first-quarter distribution per unit (DPU) of 1.65 US cents, 8.6 per cent higher than 1,52 US cents it projected.
Distributable income for the three months to end-March 2017 was US$10.4 million, 7.3 per cent higher than the US$9.7 million projected, largely due to higher property income and lower-interest costs.
The Reit, which listed in Singapore last May, recorded net property income of US$12.8 million for the quarter, 2.7 per cent more than projected.
Gross revenue however dipped 1.3 per cent below projection to US$19.8 million due to lower recoveries income. Recoveries income from tenants is recognised when applicable recoverable property operating expenses are incurred, which in the first quarter turned out lower than projected.
The lower recoveries income was partially offset by higher rental and other income mainly arising from rental escalations and higher carpark income.
Said Ms Jill Smith, CEO of the Reit's manager: "With a portfolio occupancy of 97.2 per cent, weighted lease expiry of 5.6 years and no debt expiring till 2019, we expect the portfolio to deliver a stable performance."
She added: "We remain confident in the overall US commercial real estate market and will continue to seek investment opportunities that will deliver long-term value to unitholders."