SINGAPORE (Nov 3): The manager of Manulife US REIT, the first pure-play US office REIT listed in Asia, reported DPU for 3Q17 ended Sept came in 1.60 US cents ($2.17), which came in 9.6% above projection.
During the quarter, the REIT completed its maiden acquisition of 500 Plaza Drive in New Jersey which contributed to the 3Q 17 results.
In 3Q17, gross revenue of US$23 million was 16.8% above projection due to the gross revenue contribution from Plaza, higher rental and other income which was partly offset by lower recoveries income from the IPO portfolio of Figueroa, Michelson and Peachtree.
During the quarter, the REIT registered Net Property Income (NPI) of US$14.4 million, which outperformed projection by 20.9%. The NPI was propelled by the contribution of Plaza, as well as higher NPI from the IPO Portfolio which itself was driven by higher rental and other income, and lower property expenses.
As at Sept 30, following Manulife US REIT’s completion of its maiden acquisition of Plaza, the REIT had a total portfolio valuation of US$973.5 million.
The portfolio’s occupancy remains stable at 95.7% based on committed leases.
With a weighted average lease expiry of 5.9 years and a limited percentage of leases expiring in 2017, the manager expects the portfolio to continue to deliver a solid performance.
The REIT also had a gearing of 33.1% and an average debt maturity of 3.1 years.
In its outlook, manager Manulife US Real Estate Management says market conditions continue to be generally favourable in the four markets that Manulife US REIT has invested in, with minimal new supply and rising market rents.
Units of Manulife US REIT closed at 90 cents on Thursday.
