Affected by adverse factors such as rental income, Manulife US REIT's distributable income fell by 57.6% in the second half of fiscal year 2024. Meanwhile, the trust sold a New Jersey-based asset to repay debts for $40 million (about S$53.68 million).

Manulife U.S. Real Estate Investment Trust announced before the opening of the market on Thursday (February 20), with total revenue in the second half of fiscal year 2024 being US$80.84 million (approximately S$108.49 million), compared with US$108.46 million in the same period last year 25.5% decrease; excluding the three assets sold, total revenue and net real estate income (NPI) both fell 21% and 37%.

The trust has suspended dividend payments due to its focus on reducing debts.

As for the full-year performance, Manulife's total revenue of US Real Estate Investment Trust was US$167.58 million, down 19%; net real estate revenue also shrank by 30% to US$79.87 million.

Manulife U.S. Real Estate Investment Trust explained in a statement that revenue declined, blamed on the rise in asset vacancy rates, resulting in a decrease in rental and expense income. “The decline in net real estate income is mainly due to the failure of TCW Group to renew the Figueroa building, and another financial company Industry tenants exit the Exchange building.”

Further reading

Manulife's US Real Estate Investment Trust Asset Valuation Falls 9.3%, It's Expected to Lose Full Year

Manulife's US Real Estate Investment Trust Asset Valuation Falls 9.3%, It's Expected to Lose Full Year

Manulife's US Real Estate Investment Trust Asset Valuation Falls 9.3%, It's Expected to Lose Full Year

Manulife's US Real Estate Investment Trust Asset Valuation Falls 9.3%, It's Expected to Lose Full Year

Manulife REIT, on the other hand, has signed a sale and purchase agreement to sell the 500 Plaza office building in New Jersey, USA for $40 million to repay about 19% of its debt due in 2026. The sale event is expected to be completed in the first quarter of this year.

“By selling 500 Plaza, we are able to start repaying debts due in 2026 in advance, and we plan to complete them by June 30 this year,” said John Casasante, CEO and Investment Director of Manulife US Real Estate Investment Trust. Repay in full. Currently, we are discussing the sale of other assets.”

The trust fell 3.13% to $0.093 as of 10:20 a.m.