Manulife US REIT

Analysts remain bullish on Manulife US REIT on DPU visibility, potential index inclusion

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. 

Investors welcome new initiatives to develop international valuation standards

SINGAPORE (Oct 14): More than two years after minority unitholders of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (Sabana REIT) kicked up a ruckus over the valuation of three acquisition properties that they believed were overvalued based on master lease rents, Singapore is embracing global valuation standards.

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Manulife US REIT raises US$142.7 mil from private placement, preferential offering

SINGAPORE (Sept 20): The manager of Manulife US REIT announced Friday it has raised total gross proceeds of US$142.7 million ($196.6 million) from its private placement and preferential offering. 

The private placement was more than seven times covered at the top end of the issue price range at 87.6 US cents, while the issue price under the preferential offering was fixed at 86 US cents.

Tenant diversification, unencumbered properties help derisk Manulife US REIT

(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.” 

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Manulife US REIT declares 17.7% increase in 2Q19 DPU to 1.53 US cents on higher sales

SINGAPORE (Aug 13): The manager of Manulife US Real Estate Investment Trust (Manulife US REIT) has declared a DPU of 1.53 US cents, up 17.7% from 1.30 cents declared for the same quarter last year. 

Manulife US REIT says that there was a drag on 2Q18 and 1H18 DPU figures due to issuance of the Preferential Offering Units to partially fund Penn and Phipps acquisitions while income contribution from Penn and Phipps properties was only from June 22 2018 to June 30 2018.

Supportive US macroeconomic outlook, robust demand-supply to benefit Manulife US REIT's office properties

SINGAPORE (June 19): Manulife US REIT (MUST) currently has a portfolio of eight trophy and class A office properties located in Los Angeles, New York, Washington DC and Atlanta, with a total net lettable area (NLA) of 4.16 million sf and valued at US$1.86 billion ($2.54 billion).

According to statistics, these four cities rank among the top 10 in the US in terms of GDP growth, population and median household income.

In an unrated report by CGS-CIMB, MUST has caught the attention of analyst Lock Mun Yee after she visited MUST’s properties in Atlanta and New Jersey.

Manulife US REIT acquires Virginia asset for US$122 mil; proposes US$94 mil private placement to fund deal

SINGAPORE (April 29): Manulife US REIT has agreed to acquire a freehold 11-storey Class ‘A’ office asset at the Washington Metropolitan area in Fairfax, Virginia, for a consideration of US$122 million ($166.1 million) from Carr Properties.

Comprising two towers dubbed Centrepointe I and II, the property is located along 4000 and 4050 Legato Road and features a total net lettable area (NLA) of 419,981 sq ft with 1,456 parking spaces.

Why Manulife US REIT remains a top 'buy' pick for RHB

SINGAPORE (Feb 12): RHB Research is maintaining its “buy” call on Manulife US REIT with a higher target price of 94 US cents compared to 92 US cents previously, upon lowering COE assumptions to 8.3% from 8.4% in its dividend discount model (DDM) to reflect a slightly subdued interest rate outlook.  

RHB overweight on SREITs despite interest rates worry

SINGAPORE (Oct 16): RHB is reiterating its “overweight” rating on Singapore REITs (SREITs), as it believes that selective SREITs still offer value for investors, despite lingering concerns over rising interest rates.

In a Tuesday report, analyst Vijay Natarajan says, “While we do not expect a broad-based sector outperformance, we believe SREITs with stock-specific catalysts continue to find favour.”

Currently, SREITs are trading at an average yield spread of 380 basis points to the Monetary Authority of Singapore’s (MAS) 10-year bond yield.

Why RHB is nothing but positive on Manulife US REIT's latest acquisitions

SINGAPORE (Apr 16): RHB is maintaining its “buy” on Manulife US REIT but raising its target to US$1 from 98 US cents to factor in 1-2% higher FY18-20 DPU forecasts on contributions from its latest acquisitions.

The manager of Manulife US REIT last week announced the acquisition of two office properties from its sponsor, namely 1750 Pennsylvania Avenue (Penn) and Phipps Tower (Phipps), for a total of US$387 million ($507.8 million).

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