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For FY2020, DPU slid 5.4% year-on-year to 5.64 US cents from 5.96 US cents in FY2019.
Manulife US Real Estate Investment Trust (Manulife US REIT) posted an 11.3% year-on-year decline in distribution per unit (DPU) to 2.6 US cents in the second half of 2020.
The REIT’s manager attributed the decline to lower property income as well as provision for expected credit losses mainly from retail trade and food and beverage tenants.
In 2H 2020, gross revenue increased 1.2% to US$95.6 million from US$94.5 million in 2H 2019, while net property income fell 8.2% to US$53.7 million from US$58.4 million previously.
Distributable income fell 5.5% to US$40.99 million from US$43.4 million in 2H 2019.
For FY2020, DPU slid 5.4% year-on-year to 5.64 US cents from 5.96 US cents in FY2019.
Gross revenue and net property income grew 9.3% and 4.6% to US$194.3 million and US$115.8 million, respectively, mainly due to contributions from Capital and Centrepoint which were acquired in 2019.
Distributable income increased 6.8% to US$88.97 million in FY2020 from US$83.3 million in FY2019.
Manulife US REIT registered a high occupancy of 93.4% as at 31 December 2020 and long weighted average lease expiry (WALE) of 5.3 years. Its top 10 tenants have a long WALE of 5.6 years.
“FY 2020 was a year like no other with MUST weathering the storm of the pandemic and now, in 2021, with that behind us, we are working to resume a positive track to growth. Overall, we are reporting a stable set of results for the year ended 31 December 2020,” said Jill Smith, CEO of Manulife US REIT’s manager.
She revealed that the REIT took full advantage of the low interest rates in 2020 and refinanced its mortgages.
“For 2021 we are in advanced negotiations for a sustainability-linked loan with expected cost savings,” she said.
“The fast-paced U.S. vaccine roll out will hasten the economic recovery, return to work and enable business leaders to start making decisions on office leases. Having built a well-diversified top-quality tenant base, we intend to boost growth with at least 20% of tenants in high growth sectors,” added Smith.
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