Manulife US REIT, or MUST, reported Thursday its first quarter net property income climbed 27.7 percent on-year to US$25.08 million, or around S$34.18 million on the acquisition of two properties.
The 13-storey Penn office building is Washington, D.C. and the 19-storey Trophy office building is in Atlanta, Georgia, MUST said; both were acquired in June 2018.
Gross revenue for the quarter ended 31 March rose 28.5 percent on-year to US$40.03 million, MUST said in a filing to SGX before the market open.
The distribution per unit (DPU) was 1.51 U.S. cents, up 22.8 percent from 1.23 U.S. cents in the year-ago quarter, MUST said.
Jill Smith, CEO of Manulife US Real Estate Management, the REIT’s manager, pointed to the portfolio’s occupancy, which rose to 97.4 percent by quarter-end, mainly on the Peachtree property in Atlanta’s occupancy rising to 99.4 percent from 93.7 percent in the previous quarter.
“With the easing of interest rates, we should benefit when we refinance Figueroa’s loan due in July 2019. We remain confident in the world’s
largest real estate market and will seek accretive acquisitions of Trophy/Class A buildings in desirable markets,” she said in the statement.
MUST has seven office properties in the U.S., located in California, Georgia, New Jersey and Washington, D.C.