SINGAPORE (Nov 5): Although Manulife US REIT (MUST) posted a 2% drop in its 2Q19 distribution per unit (DPU) to 1.48 US cents, market watchers are quick to highlight that this is by no stretch an indication of trouble for the REIT.
In its latest earnings call on Monday, MUST noted that the decline was attributable to an enlarged unit base on the back of the issuance of private placement units as well as new units pursuant to a preferential offering - both of which were to partially finance the acquisition of 400 Capitol Mall in California.
Conversely, other financial metrics revealed that the REIT was in good shape. Income available for distribution to unitholders for the quarter came in 7.8% higher at US$20.8 million ($28.2 million), while gross revenue rose 13.3% to US$45.7 million. As a result, net property income grew 11.8% to US$28.1 million.