Manulife US Reit | Buy (initiate) March 25 close: US$0.85 Target price: US$1.00 Maybank Kim Eng, March 22

Manulife US Reit, with its seven freehold US office assets backed by high-quality tenancies, remains a good proxy for favourable US macroeconomic fundamentals.

The Reit's weighted average lease expiry is a relatively long 5.8 years by net leasable area with lease expiries well-spread, longer than the 3-4 years for Singapore offices and one of the highest among S-Reits. Portfolio occupancy is also high and we expect 2.0-3.5 per cent DPU growth starting FY2020, supported by an advantageous lease structure.