Manulife Reit published their Q4 FY18 results this morning which saw them registered an impressive 55.4% increase year on year on the Net Property Income (NPI) due to their 2018 recent acquisitions of the two buildings – Penn in Washington DC and Phipps in Atlanta). In terms of bottomline DPU performance, it grows by 3.6% year on year to end the financial year at 6.05 US cents.
At the current share price of 85 US cents, this represents a decent 7.1% yield for exposure to a freehold Top Grade A quality of US commercial property. Do note that even while the properties are freehold, the management will have to do AEI enhancement every now and then for wear and tear, and to remake the office look to attract potential tenants. These AEIs typically cost them in the range of $8m to $10m for a smaller to midscale kind