not vested
Outlook on Manulife US REIT remains positive after a ‘respectable’ quarterBy Michelle Zhu
SINGAPORE (Feb 13): Although Religare is still in the midst of reviewing its latest rating on Manulife US REIT, the research house says it remains upbeat on the REIT’s outlook given how its 4Q16 results exceeded forecasts as the US office market continues to strengthen.
In a Monday report, the Religare sales team commends how Manulife US REIT’s portfolio valuation continued to grow by 2.5% since Sept 30 last year, as well as registered an “impressive” 7.2% over the last acquisition cost.
It also highlights the REIT’s “rock-solid” portfolio with positive rental reversion of 10.5% on about 130,000 sq ft of leases.
“During the quarter, as office absorption in US remaining strong, while new supply remain checked, the national average vacancy rate decreased by 10bps to 10.4%, as the market recorded 6m sqft of net absorption. With 5.3% (by rental income) of leases due for renewal in FY17, we remain confident that these leases will be renewed at a higher rental rate in FY17,” says the team.
“Currently, 100% of MUST’s borrowings are fixed at an average cost of debt of 2.46% per annum with no financing due till 2019. At 33.8% of leverage, Manulife US REIT has a further debt headroom of about US$87 million (assuming leverage of 40%) for future potential acquisition,” it continues.
“Looking ahead, with further room to grow organically, while management continues to seek for yield accretive acquisitions, we remain upbeat on Manulife US REIT’s outlook.”
Religare’s last rating on Manulife US REIT was “buy” with a target price of 95 US cents per unit.
As at 1.15pm, units of the REIT are trading flat at 86 cents.
Source: The Edge
http://www.theedgemarkets.com.sg/smr/?q ... 99-quarter
It's all about "how much you made when you were right" & "how little you lost when you were wrong"