Manulife U.S. Real Estate Investment Trust on Friday reported a better-than-expected quarterly distribution per share (DPU), powered by higher net property income and lower interest costs.
DPU rose to 1.60 U.S. cents for the third quarter ended September 30, which was 9.6 percent above company's projection.
Net property income rose about 21 percent above the projection to US$14.4 million in the quarter, the company said in a statement.
The Singapore-listed REIT said it completed the acquisition of a 30-storey office building in Hudson County, New Jersey from John Hancock Life Insurance during the quarter, which contributed to the results.
Revenue rose to US$23 million in the period, above the company's projection of US$19.7 million. This was due to the gross revenue contribution from Plaza, higher rental and other income.
As at 30 September 2017, the portfolio's occupancy remains stable at 95.7% based on committed leases.
Manulife Reit, the first pure-play U.S. office reit listed in Asia, said market conditions continued to be favourable in the four markets that it has invested in, with minimal new supply and rising market rents.
Shares in Manulife rose 1.1 percent to S$0.9 on the Singapore Exchange. The stock has gained about 19 percent so far this year.