Manulife US Reit posts 90.9% occupancy rate, surge in new leases for Q3 FY2021

MANULIFE US real estate investment trust (Reit) reported a 90.9 per cent occupancy rate for Q3 FY2021, which has since risen to 91.6 per cent after the period.

In a bourse filing before market open on Wednesday (Nov 3), the Reit reported a surge of 9 times in new leases. In H1 FY2021, new leases made up 3.3 per cent of the 305,000 sq ft of leased property, while from Jul 1 to Oct 25 2021, new leases made up 32.3 per cent of the 185,000 sq ft of leased property.

The Reit also reported a 1.3 per cent rental reversion for the 149,000 sq ft of leases executed in Q3 FY2021. Leasing volume for across the US has also increased to 39.2 million sq ft in Q3 FY2021, from 34.7 million sq ft in Q2 FY2021, with tenures growing to 7.7 years in Q3, from 7.4 years in Q2. (see amendment note)

The Reit is looking for accretive deals with 6.5 per cent to 7.5 per cent cap rates, eyeing growth in the technology and healthcare segments, among others. Potential US markets include Austin, Texas; San Diego, California; and Denver, Colorado.

Units of Manulife US Reit were trading flat at US$0.715 as at 9.25 am on Wednesday.

Amendment note: An earlier version of this article stated that Manulife's leasing volume and tenures have grown in Q3 FY2021, instead of US nationwide numbers.