SINGAPORE (Dec 5): Manulife US REIT will be included in the FTSE EPRA Nareit Global Developed Index with effect from Dec 23, 2019, the manager announced Thursday.
The index is established by FTSE Russell in collaboration with the European Public Real Estate Association (EPRA), the European association for listed real estate, and the National Association of Real Estate Investment Trusts (Nareit), a US-based association for REITs and publicly-traded real estate companies.
It reflects the performance of listed real estate companies and real estate investment trusts worldwide, and it is tracked by a majority of global real estate sector equity funds.
“The inclusion of Manulife US REIT in the FTSE EPRA Nareit Index signifies higher trading liquidity and visibility to institutional investors and property funds, as well as a potential positive re-rating,” says Jill Smith, CEO of the manager.
“We are delighted to celebrate this momentous milestone with our unitholders achieved only 3.5 years since IPO. Over this time, we have tripled the REIT’s market cap to US$1.5 billion ($2.0 billion) while establishing a high-quality and diversified institutional investor base from Asia, Europe and the US,” she adds.
Manulife US REIT is the first pure-play US office REIT listed in Asia.
Its current portfolio, valued at US$1.9 billion, comprises eight prime, freehold and Trophy or Class A quality office properties with an aggregate net lettable area (NLA) of 4.2 million sq ft and an occupancy rate of 97.3% as at end-September 2019.
Market watchers have been anticipating the inclusion of Manulife US REIT into the FTSE EPRA Nareit Global Developed Index, which is viewed as largely positive.
“This should help in the REIT’s re-rating, in terms of liquidity and visibility,” RHB Group Research analyst Vijay Natarajan had said in a report in early November.
As at 4.57pm on Thursday, units in Manulife US REIT are trading 1 cent higher at 98 cents.
