Manulife US Real Estate Investment Trust (Reit)said its distribution per unit (DPU) for its second quarter declined 9.7 per cent to 1.3 US cents, largely due to the drag from the enlarged unit base from a preferential offering and only nine days of income contribution from its acquisitions of Penn and Phipps.
DPU for the second quarter and first half-year were restated for the preferential offering of 227.9 million units issued on June 20, and a rights issue, through which 299.3 million units were made out on Oct 25 last year.
Owing to the enlarged unit base, DPU for the first half-year came in 14.2 per cent lower at 2.53 US cents.
After normalising the impact of the enlarged unit base, adjusted DPU for the second quarter stood at 1.53 US cents, up 5.5 per cent from 1.45 US cents a year ago.
The first pure-play US office Reit listed in Asia said its net property income (NPI) for the three months to end-June increased by 59.3 per cent to US$20.4 million (S$27.9 million), while gross revenue surged 63.4 per cent to US$32.5 million.
This was largely due to higher NPI contributions from Plaza and Exchange in New Jersey (acquired last year), as well as the newly acquired Penn in Washington and Phipps in Atlanta.
Distributable income for the quarter was up 65.3 per cent to US$16.5 million.
AT A GLANCE
REVENUE: US$32.5 million (+63.4%)
NET PROPERTY INCOME: US$20.4 million (+59.3%)
DISTRIBUTION PER UNIT: 1.3 US cents (-9.7%)
For the half-year, the Reit recorded a 60.2 per cent jump in gross revenue to US$63.7 million and a 56.6 per cent increase in NPI to US$40 million, while distributable income rose 57.5 per cent to US$32.1 million.
The distributions will be paid to unit holders on Sept 27.
Ms Jill Smith, chief executive officer of the Reit's manager, said: "The four top-quality assets acquired post-IPO (initial public offering) - Plaza, Exchange, Penn and Phipps - have fortified our overall portfolio and contributed significantly to the growth in the net property income.
"As of June 30, our portfolio has an annual rental escalation of about 2.1 per cent and registered a positive rental reversion of 7.2 per cent. In view of the rising rate environment, we intend to concentrate on our organic growth by proactively managing our leases and capital management."