Home Capital Yield watch

Tenant diversification, unencumbered properties help derisk Manulife US REIT

Goola Warden
Goola Warden8/16/2019 6:30 AM GMT+08  • 6 min read
Tenant diversification, unencumbered properties help derisk Manulife US REIT
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

(Aug 19): With five US real estate investment trusts listed on the Singapore Exchange, Jag -Obhan, chief financial officer of Manulife US REIT’s manager, clearly wants MUST to differentiate itself. How has the REIT done this? “By derisking,” Obhan says. “Derisking the balance sheet, portfolio, tax issues and tenant profile.”

From just three properties at IPO, MUST, through a series of acquisitions, now owns a portfolio of eight properties, of which two are trophy buildings and the remainder, Class A buildings. In May, the REIT bought Centerpointe I and II in Fairfax, Virginia, on the outskirts of Washington, DC, for US$122 million ($169.4 million) at an implied capitalisation rate of 7.55%.

Rental escalations and the acquisition of two properties in 2018 — Phipps in Atlanta and Penn in Washington, DC — helped grow net property income for 1HFY2019 by 30.8% y-o-y to US$52.3 million.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.