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Manulife US Reit to pay 1.6 US cents per unit, 9.6% above projections
MANULIFE US Real Estate Investment Trust (Reit) is paying a 1.6 US cent distribution per unit for the third quarter, beating its projection of 1.46 US cents by 9.6 per cent as it took in contributions from its maiden acquisition of 500 Plaza Drive in New Jersey.
Year-to-date distribution for the January-to-September period will stand at 4.83 US cents, 8.5 per cent above projections, the manager of the US-focused office properties Reit announced on Friday before the market opened. The counter last traded at 89.5 US cents on Thursday.
Manulife US Reit listed in May 2016, and year-on-year numbers are not fully comparable. The Reit has therefore benchmarked its latest results against its announced forecasts.
Gross revenue of US$23 million beat its projection by 16.8 per cent for the quarter largely due to income from 500 Plaza Drive as well as higher rentals and other income from the Reit's initial portfolio driven by rental escalations and higher car park revenue. Recoveries income, however, was lower than expected.
Net property income of US$14.4 million was 20.9 per cent over forecasts, and net income for the quarter of US$9.3 million surpassed the initial estimate by 25.7 per cent.
Manulife US Reit's portfolio occupancy stands at 95.7 per cent based on committed lease. Average lease expiry weighted by net lettable area was 5.9 years as at end-September.
Looking ahead, Manulife US Reit's manager expects a "stable performance" amid favourable market conditions in the Reit's markets.