Manulife US REIT reports nearly flat 2H21 net property income

Manulife US REIT entered a deal to acquire Diablo Technology Park, a five-building collaborative office campus in Tempe, Phoenix, in November 2021. Credit: Manulife US REITManulife US REIT entered a deal to acquire Diablo Technology Park, a five-building collaborative office campus in Tempe, Phoenix, in November 2021. Credit: Manulife US REIT

Manulife US REIT reported Wednesday its net property income for the second half slipped 0.3 percent on-year to US$53.48 million amid lower rental income due to higher vacancies, partly offset by higher car-park income and contributions from properties acquired in December.

Gross revenue for the six months ended 31 December edged down 1.4 percent on-year to US$94.3 million, the REIT said in a filing to SGX. 

The distribution per unit (DPU) came in at 2.63 U.S. cents for the six-month period, up 1.5 percent from 2.59 U.S. cents in the year-ago period, the REIT said. 

However, income available for distribution to unitholders increased 4 percent on-year to US$42.61 million, MUST said. 

The number of units at the end of the second half was 1.76 billion, up from 1.59 billion at the end of 2020, the filing said.

For the full year, Manulife US REIT reported net property income fell 5.4 percent on-year to US$109.55 million on gross revenue of US$185.1 million, down 4.7 percent on-year. DPU for the full year was 5.33 U.S. cents, down 5.5 percent from 5.64 U.S. cents in 2020, the filing said. 

Outlook

The REIT issued a cautiously upbeat outlook.

“With committed occupancy of 92.3 percent and only around 8.0 percent of leases by NLA due to expire over the course of 2022, the portfolio remains well positioned to weather any further market uncertainty from Covid-19, for which the trajectory over the next 12 months remains unknown,” MUST said.

“The manager continues to focus on asset, lease, and capital management, in addition to its commitment to sustaining and enhancing environmental, social and governance (ESG), and will selectively seek investment opportunities that deliver long term value to unitholders,” MUST said.

Read more details about MUST’s results.