Manulife US Real Estate Investment Trust (BTOU) issues 3Q-2025 update; portfolio 68.2% let, divests S$302.6 million of assets in past year

SGX Filings11-05

Manulife US Real Estate Investment Trust (BTOU) has released its supplemental data for the quarter ended Sep, 30 2025, detailing operating metrics, leasing progress and capital management indicators for its seven-property U.S. office portfolio.

The trust’s net lettable area (NLA) stood at 3.53 million sq ft with a committed occupancy of 68.2%, broadly stable versus 68.4% at Jun, 30 2025. Weighted average lease expiry (WALE) by NLA was 4.5 years.

During the quarter the manager executed 80,855 sq ft of leases, split between 39,720 sq ft of new leases (49.1%) and 41,135 sq ft of renewals (50.9%). The leases recorded a positive rent reversion of 55.8% on a gross rent basis and carried a weighted average lease term of 5.4 months.

As at Sep, 30 2025, the top-10 tenants contributed 51.4% of gross rental income (GRI). The largest tenant, The William Carter Company at Phipps, accounted for 8.4% of GRI with a remaining lease term of 9.8 years. Finance and insurance tenants represented the biggest trade-sector exposure at 18.5% of GRI, followed by legal services at 15.0%.

On lease expiries, 9.4% of portfolio NLA (S$9.95 million of GRI) is due in 2025, while a further 4.0% of NLA (S$4.80 million of GRI) is scheduled to expire in 2026. Leases extending to 2030 and beyond make up 44.6% of NLA and 44.7% of GRI.

Over the past 12 months the trust completed three divestments—Capitol in Sacramento, Plaza in Secaucus and Peachtree in Atlanta—disposing a combined 1.53 million sq ft for gross proceeds of S$302.6 million and net proceeds of S$273.2 million.

Total borrowings amounted to S$559.0 million as at Sep, 30 2025. Aggregate leverage was 56.2%, the unencumbered gearing ratio 59.6% and bank interest coverage 1.9 times. The weighted average debt maturity was 2.6 years, with 50.1% of debt hedged and a weighted average interest rate of 4.69%. Upcoming principal maturities comprise S$35.6 million in 2026, S$170.3 million in 2027, S$216.2 million in 2028 and S$137.0 million in 2029.

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