Manulife US REIT

Manulife US REIT 2H 2021 Financial Results

Manulife US REIT

On 9th February 2022, Manulife US REIT announced their 2H 2021 Financial Results. As compared to 2H 2020, Gross revenue declined by 1.4% to US$94.3 million in 2H 2021. Net property income as not spared and declined by 0.3% to US$53.5 million.

A Distribution Per Unit (“DPU”) of 2.63 US cents was declared whereby an advance distribution of 2.61 cents will be paid on 17 February 2022, with the remaining 0.32 US cents to be paid on 30 March 2022.

I have recently added more of Manulife US REIT to my stock portfolio. Manulife US REIT currently makes up 6.87% of my portfolio.


Let us take a deeper look at the reported financial results.

Manulife US REIT 2H 2021 Financial Results

Distributable Income was higher at 4.0% due to higher car park income of 36.4%, lower provision US$0.3 million for expected credit losses (ECL) versus 2H 2020 US$3.6 million. The increase was partially offset by lower rental income arising from higher vacancies.

2H 2021
2H 2020
Gross Revenue94,30095,682(1.4)%
Net Property Income53,47853,664(0.3)%
Distributable Income42,60940,9894.0%
Distribution Per Unit (“DPU”) (cents)2.632.591.5%

Manulife US REIT Full Year 2021 Financial Results

The full year 2021 financial results does not look that great. Gross revenue declined 4.7% YoY to US$185.1 million, while net property income decreased 5.4% to US$109.5 million.

Distributable income was 3.8% lower YoY at US$85.6 million, while DPU declined 5.5% YoY to 5.33 US cents due to higher rental abatements, lower car park income and lower rental income from higher vacancies, partially offset by net reversal of provision for expected credit losses (ECL).

FY 2021
FY 2020
Gross Revenue185,099194,312(4.7)%
Net Property Income109,547115,837(5.4)%
Distributable Income85,59988,967(3.8)%
Distribution Per Unit (“DPU”) (cents)5.335.64(5.5)%


Overall portfolio occupancy stood at 92.3% and a long Weighted Average Lease Expiry (“WALE”) of 5.1 years.

Manulife US REIT Occupancy 31 Dec 2021


As of 31 December 2021, the gearing stood at 42.8% which was an increase of 1.8% as compared to 41.0% in 31 December 2020.

In my opinion, the gearing is high and I hope Manulife US REIT does something to reduce the debt incurred.

Manulife US REIT Debt 31 Dec 2021

Current Dividend Yield

Based on the current share price of US$0.65 and FY2021 full year dividend payout of 5.33 cents, this translate to a current dividend yield of 8.2%.

Manulife US REIT Share Price 10 Feb 2022

Manulife US REIT  is currently trading below the Net Asset Value (“NAV”) of US$0.67.

Summary of Manulife US REIT 2H 2021 Financial Results

Manulife US REIT

Here is an overall summary of the financial results.

  • Higher rental abatements, lower car park income and lower rental income from higher vacancies in FY2021.
  • High gearing of 42.8%.
  • Low occupancy rate of below 90% at some of the properties.
  • High current dividend yield of 8.2% based on the current share price of US$0.65.
  • Currently trading at US$0.65 which is below NAV of US$0.67.

In my opinion, this can be a recovery play, betting on more office workers returning back to offices which should improve occupancy indirectly and car park income.

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