Consider $MANULIFE US REIT(BTOU.SI)$, currently trades at around 13% yield, very attractive especially in this high interest rates era.
About Manulife US REIT
Manulife US REIT is the first pure-play US Office REIT Listed in Asia, established with the investment strategy principally to invest, directly or indirectly, in a portfolio of income-producing office real estate in key markets in the United States, as well as real estate-related assets.
Manulife US REIT is the largest US Office SREIT, it has 12 properties, 5.5 m sqft net lettable area, and USD 2.2B assets under management.
Its portfolio consists of nine freehold, Class A or Trophy-quality office properties in Atlanta, Los Angeles, New Jersey, Washington DC, Virginia, Orange County and Sacramento.
Valuation
Manulife US REIT is now trading below March 2020 pandemic as you can see from the chart above. At this level, downside risks could be limited.
As for valuation, Manulife US REIT is currently trades at PE (ttm) 6.81x, 0.5x P/NAV and 13.61% DPU yield. DPU yield of 13.61% is very attractive, especially now in this high interest rates era. Unitholders can get higher yield due to MUST's tax advantage.
3Q 2022 Highlights
Below is the snapshots from company recent earnings presentation.
Portfolio occupancy declined further to below 90%, but still above the industry average of 80.5%. While leases signed in 3Q22 appear to be a little soft, at c.61k sqft, rental reversions recorded a positive improvement, at +4.3% in 3Q22.
Management expects portfolio occupancy to hold steady for the rest of the year, and maintains a positive outlook on reversions coming in at low to midsingle digits.
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