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Manulife US Real Estate Investment Trust (Manulife US REIT) posted a distributable income of US$22.3 million for its eight-month FY2016, surpassing the US$21.28 million forecast made during its Initial Public Offering (IPO) by 4.8 percent.
Due to better property performance, lower borrowing costs and trust expenses, its net income surged to US$51.67 million since its listing on the Singapore Exchange (SGX) on 20 May until 31 December 2016, beating the projection of US$16.28 million.
However, its gross revenue of US$47.51 million was 1.5 percent softer than forecasted due to lower recoverable property operating expenses, while its net property income of US$29.97 million was one percent higher than the projection.
Nevertheless, it achieved a distribution per unit (DPU) of 3.55 US cents compared to its forecast of 3.39 US cents.
“FY2016 was a milestone year for Manulife US REIT, as we launched the IPO and exceeded the DPU forecast by 4.8 percent,” said Jill Smith, CEO of Manulife US Real Estate Management Pte Ltd, the trust manager.
In addition, the value of its portfolio rose by US$56.3 million (7.2 percent) during the eight-month period, “underpinned by the positive fundamentals of the US real estate market”. she noted.
Touted as the first pure-play US office REIT listed in Asia, the trust’s portfolio consists of three prime, freehold and Class A office properties in Los Angeles, Atlanta and Irvine in Orange County, with a combined value of US$833.88 million as of 31 December.
At the same time, it has a total net lettable area of 1.8 million sq ft and an occupancy level of 97 percent.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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