Screenshot from Manulife US REIT homepage
Manulife US REITs has shown resilient rental growth with low leasing risk
First half 2019's results were in line with analysts' estimates
What Does This Mean
Manulife US REITs maintains an indicative yield of 6.7%, relatively higher as compared to other office REITs listed in Singapore. With an office portfolio focus in US, it enjoys higher yield with positive rental reversion and at the same time lower leasing risk as compared to the office REITs in Singapore. In general, US offices have a longer leasing period of 6 to 8 years (average leasing period of Singapore offices is 2 to 3 years). Property agents in US are incentivised for securing a longer leasing period. For Manulife US REITs, its WALE is increased to 6.2 years.
We will continue to watch Manulife US REITs for potential entry points.