Manulife US REIT is poised to lose its fifth largest tenant, The Children’s Place, which has opted to exercise its early termination rights.
The tenant is currently renting space at Manulife US REIT asset 500 Plaza Drive and its lease is due to expire on 31 May 2029.
The tenant has decided to vacate its 197,949 square feet of space on 31 May 2024 under the early termination option.
The tenant is obligated to pay rent until 31 May 2024 and has paid a termination fee of approximately USD4 million, said the REIT.
“The manager is currently working to secure new leases to fill the space occupied by the tenant”, said Manulife US REIT’s manager in a statement.
“The tenant’s current rental is approximately 16% below the passing rents at the asset and is about 21% below market rents”, the manager added.
Assuming that the lease was terminated on 1 January 2022, the pro forma impact on Manulife US REIT’s distribution per unit on the loss of revenue for FY2022 would be a reduction in DPU before retention from US 4.97 cents to US 4.62 cents.
MAnulife US REIT ws last done on the Singapore Exchange at USD0.174.