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Manulife US Real Estate Investment Trust, the first pure-play US office Reit listed in Asia, reported a distribution per unit (DPU) of 1.65 US cents for the first quarter of 2017, up 8.6 percent from the projected DPU of 1.52 US cents.
Net property income also outpaced projection by 2.7 percent at US$12.8 million in Q1 2017. Gross revenue, however, was 1.3 percent below projection at US$19.8 million “due to lower recoveries income, which was partially offset by higher rental and other income mainly arising from rental escalations and higher car park income”.
Nonetheless, the trust registered a distributable income of US$10.4 million, which is 7.3 percent higher than projection due to higher property income and lower interest expenses.
“With a portfolio occupancy of 97.2 percent, weighted lease expiry of 5.6 years and no debt expiring till 2019, we expect the portfolio to deliver a stable performance,” said Jill Smith, Chief Executive Officer of the trust’s manager.
“The U.S. economy remains strong with an unemployment rate of 4.5 percent in March 2017 and lower vacancy rate of the office sector by 10 basis points to 10.3 percent in Q1 2017. We remain confident in the overall U.S. commercial real estate market and will continue to seek investment opportunities that will deliver long term value to Unitholders.”
This article was edited by Denise Djong.
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