Manulife US REIT - Focus On Portfolio Resilience
- Manulife US REIT (SGX:BTOU) saw a dip in portfolio occupancy q-o-q at 91.6% at end-1Q22 (vs. 92.3% at end- 4Q21), due to lower occupancy at Figueroa, Peachtree, Exchange, Centerpointe, and Capitol, partly offset by improved take-up at Michelson.
- Manulife US REIT signed 68k sqft of leases in 1Q22, of which 54% are new leases. It achieved a better q-o-q positive rental reversion of 3.9%, within its guidance of low-to mid-single digit reversions for FY22F. MUST has a balance of 6.4%/13.1% of leases due to expire in 9MFY22F/FY23F.
- In terms of operating costs, Manulife US REIT indicated that while utilities make up ~11% of opex, these costs are mainly borne by tenants and there is likely to be a minimal impact on Manulife US REIT.
- We keep our FY22-24F DPU estimates for Manulife US REIT unchanged post update. However, we tweak down our DDM-based target price for Manulife US REIT from US$0.89 to US$0.86, due to a slightly higher cost of equity assumption of 7.84% (vs. 7.58% previously).
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2022-05-09 2022-05-09
Previous report by CGS-CIMB:
2022-02-09 Manulife US REIT - More Signs Of Recovery
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