Manulife US REIT (MUST) has reported net property income of US$30.2 million, down 29.5% y-o-y, for its 1HFY2025 ended June 30. Gross revenue in the same half year was down 30.4% to US$60.4 million.
Income available for distribution declined by a similar magnitude of 34.7% to US$14.9 million.
The REIT attributes these lower numbers to the absence of contributions from three divested properties, but partially offset by lower financing costs.
On a same-store basis, MUST's portfolio occupancy held steady at 68.4%.
In 1HFY2025, it signed around 125,000 sq ft of leases, comprising 3.5% of its portfolio net lettable area.
Despite rent reversion of negative 10%, eight in 10 of its leases signed were above market rates.
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As at June 30, its portfolio weighted average lease expiry remained fairly steady at 4.6 years.
Thus far, MUST has divested three assets at some US$270 million in its active bid to cut debt. Proceeds from the sales will be used for future acquisitions as well.
For the half year ended June 30, its aggregate leverage ratio has improved to 57.4% from 59.4% three months ago.
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Following an additional debt repayment of US$25 million in July 2025, MUST has repaid all its 2025 debts and around 83% of its 2026 debts.
Since December 2023, MUST has paid down some US$465 million or around 45% of its outstanding debt, leaving US$559 million of debt maturing between 2026 and 2029.
"Future asset dispositions will align with our broader growth strategy as we evaluate liquidity across the portfolio to maximise proceeds," says John Casasante, CEO and CIO of MUST.
"Our lenders have been supportive, and we continue to have discussions with them to explore strategies to mitigate risks. We remain disciplined in leasing to improve our income and book value,” he adds.
MUST units closed at 6.5 US cents on Aug 13, up 3.17% for the day and down 27.78% year to date.
