How does Manulife US REIT stack up against other office trusts?

It offers investors exposure to the US property market's recovery.

Manulife US REIT has a unique edge against other listed office REITs. While other office landlords are grappling with dwindling rents and obstinate tenants, Singapore's newest office player is uniquely exposed to the United States' recovering commercial property market.

According to a report by DBS, Manulife US REIT has an edge because it offers investors a unique opportunity to invest in high quality freehold properties in the US, where the real estate market outlook is favourable and the economy is recovering.

Compared to other office REITs, Manulife US REIT also boasts an impressive weighted average lease expiry (WALE) of 5.7 years, with 72% of leases scheduled to expire by 2020 and beyond.

The REIT has a comfortable gearing of 38%, and its debt are 100% hedged.

“Given that Manulife US REIT’s growth prospects are bright, with potential upside from rental reversions and acquisitions as the US property market continues on its recovery path, we believe investors in Singapore will anticipate the potential increase in value of Manulife US REIT’s properties,” said the report. 

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