May 13, 2023 – Manulife US REIT (MUST) said in its first quarter to March update report that its occupancy rate reached 86.1% as of April 18 with an estimated 348,000 square feet of leases executed. Its gearing was at 49.5%.
MUST faces leasing challenges in the US as office right-sized due to hybrid work, the report said. Other challenges include rising cost of debt and its high gearing prohibits funding of capital expenditure and tenant incentives for leasing. Asset disposals are also hindered by buyers’ limited access to credit financing.
With Mirae Asset Global Investments as a strategic partner that will subscribe at least 9.8% of new units, MUST will be able to reduce its gearing. The proposal will also allow access to Mirae’s US asset pipeline.
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Every 1% increase in interest rate will impact DPU by 0.115 US cents
