SINGAPORE (Aug 8): The manager of Manulife US REIT, the first pure-play US office REIT listed in Asia, today announced a 2Q17 DPU of 1.58 US cents, exceeding IPO prospectus projection of 1.47 US cents by 7.5%.

This brings DPU of 1H17 to 3.23 US cents versus the projected 2.99 US cents.

For 2Q17, the REIT recorded net property income of US$12.8 million ($17.4 million) which was 3.7% above projection, while gross revenue was 0.3% below projection due to lower recoveries income but partially offset by higher rental and other income mainly arising from rental escalations and higher car park income.

Distributable income of US$20.4 million for 1H17 exceeded projection by 7.1%, largely due to higher property income and lower interest costs.

As at June 30, the REIT’s portfolio valuation increased 2.8% from the previous valuation in 31 December 2016 to US$857.5 million.

On July 20, Manulife US REIT announced the completion of its maiden acquisition in New Jersey, 500 Plaza Drive, for the purchase price of US$115 million.

As at June 30, gearing was reduced 34.2% from 30.4% as at March 31.

In its outlook, the manager of Manulife US REIT says market conditions continue to be generally favourable in the three markets that Manulife US REIT has invested in, with minimal new supply and rising market rents.

Units in Manulife US REIT closed at 92 US cents on Monday.