DBS Equity Research has revised its target price on Singapore-listed Manulife US REIT, citing stronger-than-expected rents at one of its properties, and rental reversions against the backdrop of positive signs in the US office market.

Manulife US REIT reported its 1Q 2017 results on 2 May with a DPU of 1.65 US cents, beating forecast made during its IPO by 8.6%.

The REIT currently has a portfolio of three office properties across the US, in the cities of Los Angeles and Irvine in California, and Atlanta, Georgia.

DBS has also maintained its ‘Buy’ rating on the REIT, favouring its attractive potential yield of 7.6%, built-in rental escalations, and exposure to the supply fundamentals in the various US cities where its properties are located.

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