Manulife US Reit Q2 earnings mostly above projection; enters into US$51.6m mortgage facility

MANULIFE US Real Estate Investment Trust (Reit) on Tuesday announced second quarter earnings that were mostly above projection, and an entry into a US$51.6 million mortgage facility for a property in New Jersey.

The US office Reit posted a distribution per unit (DPU) of 1.58 US cents for the three-month period ended June 30, which were 7.5 per cent higher than its projection of 1.47 US cents.

Net property income was US$12.8 million, 3.7 per cent higher than the projected US$12.3 million.

Gross revenue came up to US$19.91 million, marginally (0.3 per cent) below the forecast of US$19.97 million, due to lower recoveries income but partially offset by higher rental and other income mainly arising from rental escalations and higher car park income.

Income available for distribution to unitholders was US$9.99 million, 6.9 per cent higher than the forecasted US$9.35 million.

There is no year-on-year comparison as Manulife US Reit was listed on Singapore Exchange on May 20, 2016.

On Tuesday, the Reit announced that its indirect wholly owned subsidiary, Hancock S-Reit SECA, has entered into a loan agreement with Wells Fargo Bank, National Association, for an aggregate principal amount of up to US$51.6 million.

This comprises an initial funding of US$40 million, as well as a good news facility of up to US$11.6 million for Manulife US Reit's future budgeted capital and leasing costs.

The mortgage facility is secured by, among other collateral, a first mortgage on 500 Plaza Drive, a property in Secaucus, New Jersey.