Singapore REIT

Manulife US REIT 1H 2020 Distribution Per Unit Up 0.3%

August 3, 2020 — Manulife US Real Estate Investment Trust , the first pure-play U.S. office REIT listed in Asia, reported its gross revenue of US$98.6 million and net property income of US$62.2 million for the first half ended 30 June 2020 , recording year-on-year increases of 18.3% and 18.8% respectively.

The robust growth in income is largely due to contributions from Centerpointe and Capitol acquired in FY 2019, partially offset by lower rental income mainly from Michelson and lower portfolio carpark income. For 1H 2020, the REIT reported a 20.0% YoY increase in distributable income to US$48.0 million. This translated to a DPU of 3.05 US cents, 0.3% higher as compared to the same period a year ago.

SUMMARY OF MANULIFE US REIT RESULTS

1H 2020(US$’000)1H 2019 (US$’000)Change (%)
Gross Revenue98,63083,33918.3
Net Property Income62,17352,34218.8
Distributable Income47,97839,96720.0
Distribution per Unit (“DPU”) (US cents)3.053.040.3

Ms Jill Smith, Chief Executive Officer of Manulife US Real Estate Management Pte. Ltd. said, “As the world continues its battle with COVID-19, MUST’s fortified portfolio powered on, delivering a 20% YoY increase in distributable income to US$48.0 million for 1H 2020. Over this first half, we worked hard to sign ~217,300 sq ft of leases achieving a +7.9% rental reversion.

Our 2020 refinancing was completed with a new loan at a lower interest rate of 1.85% p.a. and we obtained an additional US$50.0 million revolving credit facility to store up financial flexibility, bringing our total undrawn credit facilities to ~US$135 million.

Rental collections remained strong averaging 96% for April, May and June. We are confident that MUST’s portfolio is well-positioned to weather the ongoing economic turmoil anchored through its high occupancy of 96.2%, long WALE of 5.7 years, minimal expiries in 2020 and 2021, competitively positioned rents and a superior tenant base. As always, we are intent on protecting MUST’s portfolio, preserving DPU and to that end, we are working with our tenants to emerge stronger together.”

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