August 14, 2023 – Manulife US Real Estate Investment Trust (MUST) reported a gross revenue of US$99.6 million for the half year ended June 30, 2023, which was 0.8% lower year-on-year from 1H 2022, its manager said in a statement
Net property income dipped 3.9% to US$55.4 million, while distributable income decreased 17.4% to US$37.9 million. This was partiallyoffset by higher lease termination fee income and higher parking income. The distributions for 1H 2023 will be halted due to the previously disclosed breach of a financial covenant in some of MUST’s financing documents and the fact that the manager would not be able to certify that it is satisfied on reasonable grounds that, immediately after making the distribution, MUST will be able to fulfil, from the deposited property of the property fund, its liabilities as they fall due, according to the statement. The manager is working to generate proceeds to repay upcoming loan maturities, and fund capital expenditure and leasing costs, it added. As at June 30, 2023, MUST’s aggregate leverage ratio is 56.7%.
