Manulife US Reit sees 91.7% occupancy in Q1; expects positive rental reversion

SINGAPORE (THE BUSINESS TIMES) – US office-focused Manulife US Real Estate Investment Trust (Manulife US Reit) on Monday (May 9) said that portfolio occupancy for the first quarter ended March 31 remained stable at 91.7 per cent, above the US Class A average of 83 per cent.

With a long -weighted average lease expiry of five years, the Reit manager expects positive rental reversion, it said in an operational update.

The Reit has about 68,000 square feet (sq ft) of executed leases, with 3.9 per cent rental reversion. More than half, or 54 per cent of total leases were new, while the remaining 46 per cent were renewed leases. Sectors leasing its properties include accounting, real estate and finance and insurance companies.

About 6.4 per cent of leases by gross rental income will expire in 2022. A majority of leases (49.4 per cent) by gross rental income will expire in 2027 and beyond.

Physical building occupancy stood at 32 per cent, down 2 percentage points from 34 per cent the previous quarter and up 20.9 percentage points from 11.1 per cent in the year-ago period.

The Reit's weighted average debt maturity stood at 2.6 years as at Mar 31. Its weighted average interest rate was 2.86 per cent. The manager noted that every 1 per cent increase in interest rate will impact the Reit's distribution per unit by US$0.00075.

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Gearing meanwhile, was 42.8 per cent, based on gross borrowings as a percentage of total assets.

The counter closed one US cent, or 1.6 per cent, lower at 61.5 US cents on Friday.

Artmotion Asia

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