Manulife US REIT declares FY16 DPU of 3.55 US cents, beating forecast by 4.8%

SINGAPORE (Feb 13): The manager of Manulife US REIT reported a distribution per unit (DPU) of 3.55 US cents (5 Singapore cents) for FY16, which exceeded the forecast DPU of 3.39 US cents by 4.8% due to higher property performance and lower borrowing costs and trust expenses.

Based on the REIT’s closing price of 86 US cents on Feb 10, the REIT has an annualised yield of 6.7%.

The REIT recorded FY16 gross revenue of US$47.5 million (RM211 million), which was 1.5% below forecast due to lower recovery revenues.

Nevertheless, it generated net property income (NPI) of US$30 million, 1% higher than the REIT’s initial public offering (IPO) forecast, mainly due to higher rental and other income, and lower property expenses.

As such, distributable income for the full year stood at US$22.3 million, beating the REIT’s forecast by 4.8% due to higher NPI, together with lower finance and other trust expenses.

For the fourth quarter ended Dec 31, Manulife US REIT recorded distributable income of US$9.7 million, which outperformed the REIT’s forecast by 3.6%. A DPU of 1.54 US cents was recorded for the quarter.

In the SGX press release filed before the market opened on Monday, Jill Smith, CEO of the REIT’s manager, noted that Manulife US REIT’s portfolio valuation grew 7.2% in the reporting year, underpinned by the positive fundamentals of the US real estate market.

“Moving forward, the US commercial market is poised to benefit from the growth of the US economy. We are excited by the year ahead and will drive the REIT forward in the best interests of unitholders,” says Smith.

According to its policy, the REIT will be distributing 100% of its distributable income from its listing date on May 20, 2016, to Dec 31 in the same year.

The manger will pay its first distribution on March 30.

Units of Manulife US REIT closed flat at 86 US cents on Friday. — theedgemarkets.com.sg

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