Manulife US REIT net property income dips 0.3% in H2 2021
This translated to an amount of $71.91m.
Manulife US Real Estate Investment Trust reported a net property income of $71.91m (US$53.5m) and gross revenue of $126.76m (US$94.3m) for the second half (H2) of 2021, a 0.3% and 1.4% year-on-year (YoY) dip, respectively.
This translated to an H2 2021 distributable income of $57.26m (US$42.6m), an increase of 4.0%. Distribution per unit added 1.5% YoY to 2.63 US cents, due to lower provision for expected credit losses and higher car park income, offset by lower rental income arising from higher vacancies.
Manulife US REIT Management CEO Jill Smith said, "The first half [of 2021] was about quelling the pandemic through the vaccination programme and the reopening of the US economy, leading to a surge in GDP growth. On the back of that, from the middle of the year, the US office market started to rebound as transactions and leasing improved, resulting in leasing activity increasing +13.8% from Q3 to Q4, whilst tenant improvement allowances eased 11.4%.
"We saw similar green shoots in its portfolio in the second half. We signed leases with longer WALE, saw net effective rents improve +3.4% from 1H 2021 to 2H 2021, and portfolio valuations turned positive for the first time since the start of COVID-19. We are extremely pleased to have ended 2021 with the delivery of our previously communicated strategy to enter into high-growth markets with greater exposure to technology and healthcare tenants."
Moving forward, the US office sector will remain a core part of Manulife US REIT's portfolio. The manager said it will focus on improving leasing to drive income while futureproofing the business through portfolio rejuvenation and improving green credentials to capture the rising demand for green office space.
(US$1 = $1.34)