Manulife US REIT Is Looking to Grow The Co-working Segment



Key Highlights:

  • Manulife US REIT (SGX: BTOU)'s 3Q19 DPU dropped 2%

  • The annualised yield and price to book ratio are 6.4% and 1.16 respectively


1. Dividends


Net property income was up 11.8% to $28.1m. The was mainly due to the contribution from new property, Centerpointe in Washington DC, which was completed in May.


The annualised yield is 6.4%.



2. Portfolio


Portfolio occupancy remains stable at 97.3%. The REIT maintains a well- diversified tenant mix across multiple trade sectors, with no single tenant contributing more than 6.6% of its gross rental income. The portfolio leverage is currently at the healthy side of 36.3%. The interest cost is at 3.39%, with 95.5% of the loans are on fixed rates.


It is currently trading at a price to book ratio of 1.16.



3. Growth Catalyst


Moving forward, there will be few growth catalysts:

  1. Manulife US REIT has three co-working tenants, contributing 1.9% of its income. The REIT is looking to grow the co-working segment moving forward.

  2. The asset enhancement initiatives at Figueroa is on track to be completed in 4Q19 or 1Q20.

  3. In US, the demand for the office segment has started to pick up.



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