Net income from Manulife US REIT ownership falls 0.3% in the second half of 2021


This resulted in an amount of $71.91 million.

Manulife US Real Estate Investment Trust reported net property income of $71.91 million ($53.5 million) and gross income of $126.76 million ($94.3 million) for the second half (H2) of 2021, or 0.3% and 1.4% year-over-year. year (YoY) declines, respectively.

This translated into distributable income in H2 2021 of $57.26M (US$42.6M), an increase of 4.0%. Payout per unit increased 1.5% year-on-year to 2.63 US cents, driven by lower expected credit loss provision and higher parking revenue, offset by lower rental income resulting from the increase in vacancy rates.

Jill Smith, CEO of Manulife US REIT Management, said, “The first half [of 2021] aimed to quell the pandemic through the vaccination program and the reopening of the US economy, leading to a sharp increase in GDP growth. On this basis, from the middle of the year, the US office market began to rebound with the improvement in transactions and leasing, leading to an increase in rental activity of +13.8% between Q3 and in Q4, while tenant improvement allowances decreased by 11.4%.

“We saw similar green shoots in its portfolio in the second half. We signed leases with a longer WALE, saw net effective rents improve by +3.4% from 1H 2021 to 2H 2021, and portfolio valuations have turned positive for the first time since the onset of COVID -19 We are extremely pleased to have ended 2021 with the implementation of our previously communicated strategy to enter high growth markets with greater exposure technology and healthcare tenants.

Going forward, the US office sector will remain a core part of Manulife US REIT’s portfolio. The manager said he will focus on improving the rental to generate revenue while ensuring the sustainability of the business through rejuvenating the portfolio and improving green credentials to meet growing demand for green office spaces.

($1 = $1.34)


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