Investment Strategy

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Manulife US REIT is a Singapore REIT 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.

In accordance with the requirements of the Listing Manual, the Manager’s investment strategy for Manulife US REIT will be adhered to for at least three years following the Listing Date. The Manager’s investment strategy for Manulife US REIT may only be changed within three years from the Listing Date if an Extraordinary Resolution is passed at a meeting of Unitholders duly convened and held in accordance with the provisions of the Trust Deed.

REIT Structure

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Manulife US REIT will be investing in the Properties in the United States through special purpose vehicles (“SPVs”) that are wholly-owned subsidiaries of the Parent U.S. REIT and organised so as to qualify as U.S. REITs.

U.S. REITs are generally permitted to deduct dividends paid to their shareholders from their U.S. federal (and in most instances, state) taxable income. It is intended that each Property will be acquired and held in a separate U.S. REIT. This structure may facilitate financing on more attractive terms than might be available if the Properties were held by a single U.S. REIT.

Additionally, if Manulife US REIT desires to dispose of any one of the Properties, the exit can be structured as a sale of the shares of the U.S. REIT which owns the Property rather than a sale of the underlying real property, with the goal of simplifying legal transfer and eliminating any otherwise applicable U.S. branch profits tax on the transaction.

In addition, the Property-holding U.S. REITs may form one or more TRSs. TRSs are subsidiaries of U.S. REITs that are generally permitted to undertake activities that the U.S. REIT rules might prohibit a U.S. REIT from performing directly. Such TRSs will enable the Property-holding U.S. REITs to provide non-customary services to their tenants without jeopardising their U.S. REIT statuses.

The following diagram illustrates the relationship, among others, between Manulife US REIT, the Manager, the Trustee, the U.S. Asset Manager and the Unitholders as at the Listing Date:

Growth Strategies

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Key Objectives

The Manager's key objectives are to provide Unitholders with regular distributions and achieve long-term growth in Distribution per Unit (DPU) and net asset value (NAV) through prudent capital management.

Key Strategies

The Manager will seek to achieve Manulife US REIT's key objectives through the following strategies:

  • Proactive asset management and asset enhancement strategy – The Manager will actively manage Manulife US REIT's property portfolio with the objective of achieving growth in Gross Revenue and Net Property Income and maintaining optimal occupancy levels. The Manager will also look to drive organic growth, encourage strong relationships with the tenants of the Properties and facilitate property enhancement opportunities.
  • Investments and acquisition growth strategy – The Manager will seek to achieve portfolio growth through the acquisition of quality income-producing properties used mainly for office purposes that fit within Manulife US REIT's investment strategy to enhance the returns to Unitholders and to pursue opportunities for future income and capital growth.
  • Capital management strategy – The Manager will endeavour to employ an appropriate mix of debt and equity in financing acquisitions and adopt financing policies to optimise risk-adjusted returns to Unitholders.

About Manulife US REIT

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Manulife US Real Estate Investment Trust (MUST or the REIT) is a Singapore real estate investment trust (REIT) listed on Singapore Exchange Securities Trading Limited (the SGX-ST) since 20 May 2016.

Its investment strategy is principally to invest, directly or indirectly, in a portfolio of income-producing office real estate in key markets in the United States (U.S.), as well as real estate-related assets. MUST’s portfolio comprises three prime, freehold, quality office properties strategically located in Los Angeles, Irvine and Atlanta with a combined asset value of US$833.8 million as at 31 December 2016.

The REIT is managed by Manulife US Real Estate Management Pte. Ltd. (the Manager) which is wholly owned by the Sponsor, The Manufacturers Life Insurance Company (Manulife), part of the Manulife Group. The Sponsor’s parent company, Manulife Financial Corporation (MFC), is a leading international financial services group providing forward-thinking solutions to help people with big financial decisions. It operates as John Hancock in the U.S., and Manulife elsewhere providing financial advice, insurance and wealth and asset management solutions for individuals, groups and institutions.