500 Plaza Drive in Secaucus, New Jersey. (Photo: Manulife US REIT)500 Plaza Drive in Secaucus, New Jersey. (Photo: Manulife US REIT)

Manulife US REIT has posted a distribution per unit (DPU) of 1.58 US cents for its 2Q 2017, beating expectations set during its initial public offering (IPO) by 7.5%.

Accordingly, the Singapore-listed office REIT recorded net property income of USD12.8 million for the quarter, which was 3.7% above projection.

However gross revenue missed expectations by 0.3% below due to lower recoveries income, but this was partially offset by higher rental and other income arising from rental escalations, and higher car park collections.

For the period, Manulife US REIT’s portfolio occupancy rate based on committed leases was at 95.9%, with a weighted average lease expiry (WALE) of 5.3 years.

The REIT’s gearing for the period was at 30.4%, which has reduced significantly from the 34.2% that was recorded for 1Q 2017, but the figure is as such because the cash proceeds of USD80.5 million raised for the acquisition of Plaza have not been deployed as at 30 Jun 2017.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.