Analysts are generally positive on Manulife US REIT in spite of 2HFY2021 results ‘a miss’, despite operational improvements, underpinned by strong leasing momentum and a positive rental reversion guidance into FY2022.
Maybank Securities analyst Chua Su Tye has kept his “buy” rating on Manulife US REIT, with a lowered target price of 95 US cents ($1.28) from US$1. The REIT’s distribution per unit (DPU) for the 2HFY2021 was up 1.5% on a y-o-y basis, but down 2.6% on a h-o-h basis on higher rental abatements, lower carpark income and higher vacancies.
“We see tailwinds from strengthening US fundamentals, but have cut our DPUs by 5% on lower occupancies,” explains Chua. “DPU visibility remains high, and well-cushioned by its low FY2022-2023 lease expiries and quality tenancies.”