Manulife US Reit portfolio occupancy falls to 68.2% in Q3
Some 81,000 sq ft of leases have been executed in Q3, making up 2.3% of the portfolio’s net lettable area
[SINGAPORE] The manager of Manulife US Reit on Wednesday (Nov 5) reported portfolio occupancy of 68.2 per cent for its third quarter ended September, down from 68.4 per cent in the previous quarter.
Some 81,000 square feet (sq ft) of leases were executed in Q3, making up 2.3 per cent of the portfolio’s net lettable area, said the manager. Year to date, about 206,000 sq ft of leases were signed.
The Reit’s manager said the weighted average lease expiry of leases executed in Q3 stood at 4.7 years, although rental reversion in the period was negative at minus 11.3 per cent.
As at end-September, the Reit’s gearing stood at 59.6 per cent and its weighted average debt maturity was 2.6 years.
Some 74.6 per cent of loans remained hedged or fixed as at end-September. The manager said it targets an “optimal hedge ratio” of 50 to 80 per cent as it repays debt from proceeds from expected sale of assets.
The manager said about US$160 million of 2026 debts have been repaid from Plaza and Peachtree sales proceeds and no further debts are due in 2025. About 17 per cent of 2026 debt remains and is due in July 2026.
The entire portfolio has a weighted average lease expiry of 4.5 years based on net lettable area, with 9.4 per cent of leases expiring in the remainder of 2025.
Annual rent escalation is at an average of 2.3 per cent, with nearly three-quarters of the portfolio having annual rent escalations at that rate.
Units of Manulife US Reit fell 1.4 per cent or US$0.001 to close at US$0.073 on Tuesday.
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