Latest news with #JohnCasasante
Business Times
6 days ago
- Business
- Business Times
Manulife US Reit posts 34.9% lower H1 distributable income per unit of US$0.0084
[SINGAPORE] The manager of Manulife US Real Estate Investment Trust (Reit) on Thursday (Aug 14) reported a distributable income per unit for the first half of FY2025 of US$0.0084, down 34.9 per cent from US$0.0129 a year before. Revenue declined 30.4 per cent to US$60.4 million for the period, from US$86.7 million in H1 FY2024, largely due to the divestment of Capitol Mall in Sacramento in October 2024, 500 Plaza in Secaucus, New Jersey, in February 2025 and Peachtree, a 28-storey Class A office building in Atlanta, Georgia, in May 2025. This is in addition to lower rental and recoveries income as a result of higher portfolio vacancy rate as well as lower recoveries income due to a reduction in current and prior years' property tax. Net property income stood at US$30.2 million for H1, down 29.5 per cent from US$42.8 million in the same year-ago period. Income available for distribution declined 34.7 per cent year on year to US$14.9 million, from US$22.9 million, mainly due to the loss of income from the sale of the three properties. This was partially offset by a decrease in finance expenses due to lower debt balances from repayments in 2024 and 2025 and lower base management fees. Portfolio occupancy was at 68.4 per cent on a same-store basis, and rental reversions were at minus 10 per cent. The manager of the Reit noted, however, that eight of 10 of its leases signed were above market rates. Its portfolio weighted average lease expiry remained at 4.6 years as at Jun 30, 2025. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Aggregate leverage as at Jun 30, 2025 stood at 57.4 per cent, with an interest coverage ratio of 1.6 times. Its weighted average debt maturity was at 2.8 years. The manager of the Reit noted that 'significant progress' has been made in debt repayments, as the Reit now focuses on recovery and growth. John Casasante, chief executive officer and chief investment officer of the manager, said: 'Future asset dispositions will align with our broader growth strategy as we evaluate liquidity across the portfolio to maximise proceeds. We remain disciplined in leasing to improve our income and book value. Our lenders have been supportive, and we continue to have discussions with them to explore strategies to mitigate risks.' The counter closed flat at US$0.065 on Wednesday before the release of its results.
Business Times
6 days ago
- Business
- Business Times
Manulife US Reit posts 34.9% lower H1 distribution per unit of US$0.0084
[SINGAPORE] The manager of Manulife US Real Estate Investment Trust (Reit) on Thursday (Aug 14) reported a distribution per unit for the first half of FY2025 of US$0.0084, down 34.9 per cent from US$0.0129 a year before. Revenue declined 30.4 per cent to US$60.4 million for the period, from US$86.7 million in H1 FY2024, largely due to the divestment of Capitol Mall in Sacramento in October 2024, 500 Plaza in Secaucus, New Jersey, in February 2025 and Peachtree, a 28-storey Class A office building in Atlanta, Georgia, in May 2025. The proceeds from the two 2025 divestments have gone towards repayment of approximately US$160 million of the group's 2026 debts. This is in addition to lower rental and recoveries income as a result of higher portfolio vacancy rate as well as lower recoveries income due to a reduction in current and prior years' property tax. Net property income stood at US$30.2 million for H1, down 29.5 per cent from US$42.8 million in the same year-ago period. Income available for distribution declined 34.7 per cent year on year to US$14.9 million, from US$22.9 million, mainly due to the loss of income from the sale of the three properties. This was partially offset by a decrease in finance expenses due to lower debt balances from repayments in 2024 and 2025 and lower base management fees. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Portfolio occupancy was at 68.4 per cent on a same-store basis, and rental reversions were at minus 10 per cent. The manager of the Reit noted, however, that eight of 10 of its leases signed were above market rates. Its portfolio weighted average lease expiry remained at 4.6 years as at Jun 30, 2025. Aggregate leverage as at Jun 30, 2025 stood at 57.4 per cent, with an interest coverage ratio of 1.6 times. Its weighted average debt maturity was at 2.8 years. The manager of the Reit noted that 'significant progress' has been made in debt repayments, as the Reit now focuses on recovery and growth. It has repaid all its 2025 debts and around 83 per cent of its 2026 debts, following an additional debt repayment of US$25 million in July 2025. Around US$465 million or 45 per cent of the Reit's outstanding debt has been paid down since December 2023, which leaves US$559 million of debt maturing between 2026 and 2029. For 2026, it has US$35.6 million of debt maturing in July that year. The subsequent debt maturity is 20 months away in April 2027. John Casasante, chief executive officer and chief investment officer of the manager, said: 'Future asset dispositions will align with our broader growth strategy as we evaluate liquidity across the portfolio to maximise proceeds. We remain disciplined in leasing to improve our income and book value. Our lenders have been supportive, and we continue to have discussions with them to explore strategies to mitigate risks.' The counter closed flat at US$0.065 on Wednesday before the release of its results.
Business Times
11-05-2025
- Business
- Business Times
Manulife US Reit divesting Atlanta property for US$133.8 million to repay loans due 2026
[SINGAPORE] The manager of Manulife US real estate investment trust (Reit) announced on Sunday (May 11) that it has agreed to sell Peachtree, a 28-storey Class A office building in Atlanta, Georgia for US$133.8 million. The purchaser is an unrelated third party, and the purchase-and-sale agreement is subject to approval by the lenders of Manulife US Reit, among other conditions. Manulife US Reit expects to get US$118.8 million as net proceeds from the transaction, excluding the seller's credit and transaction costs. This will result in an estimated net loss of US$52.5 million from the Peachtree divestment for FY2025. Net proceeds will be fully used to repay debt. The rationale to divest Peachtree is to make early partial repayment of Manulife US Reit loans due in 2026. The proceeds will enable the Reit to pay down about 58 per cent of the 203.9 million of loans maturing in 2026. Including the US$40 million repayment in March 2025 from the Plaza divestment, Manulife US Reit will pay off about 78 per cent of the loans due in 2026, with about US$45.1 million remaining. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Coupled with its previous divestment of Capitol and cash contribution from the balance sheet, total debt repayment will be close to US$290 million since Nov 2024. The sale of Peachtree improves financial ratios, with Manulife US Reit's pro forma aggregate leverage expected to improve to 57.7 per cent from 60.8 per cent and pro forma weighted average interest cost is expected to reduce to 4.07 per cent from 4.53 per cent. Under the master restructuring agreement signed with Manulife US Reit's lenders, the Reit is required to achieve minimum cumulative net sales proceeds of US$328.7 million by Jun 30, 2025. With the sale of Peachtree, Capitol and Plaza, Manulife US Reit would achieve about 82 per cent of its net proceeds targets. The heightened economic uncertainty surrounding trade policies and ongoing challenges hampering office transactions, such as remote and hybrid work arrangements and a lack of financing, has created a challenging environment for commercial real estate. 'We remain in active discussions on the divestment of additional properties. In view of current headwinds, we believe that disposing Peachtree would enable us to mitigate risks and achieve the best possible outcome for Unitholders,' said John Casasante, CEO and chief investment officer of the manager. The manager plans to reposition the portfolio for growth through diversification by pursuing opportunities in other real estate sectors and permissible alternative real estate investments that have attractive and accretive cash yield and are less capital-intensive. The Reit will also tap its sponsor's global real estate platform and in-house capabilities to capitalise on opportunities in the US real estate market. 'We remain focused on moving Manulife US Reit towards recovery as soon as possible so that we may return to a growth trajectory,' added Casasante. Units of Manulife US Reit closed up 5 per cent or US$0.003 to US$0.063 on Friday.
Business Times
11-05-2025
- Business
- Business Times
Manulife US Reit to divest Atlanta property for US$133.8 million to repay 2026 debts
[SINGAPORE] The manager of Manulife US real estate investment trust (Reit) announced on Sunday (May 11) that it has agreed to sell Peachtree, a 28-storey Class A office building in Atlanta, Georgia for US$133.8 million. The purchaser is an unrelated third party, and the purchase and sale agreement is subject to approval by the lenders of Manulife US Reit, among other conditions. Manulife US Reit expects to get US$118.8 million as net proceeds from the transaction, excluding the seller's credit and transaction costs. This will result in an estimated net loss of US$52.5 million from the Peachtree divestment for FY2025. Net proceeds will be fully used to repay debt. The rationale to divest Peachtree is to make early partial repayment of Manulife US Reit loans due in 2026. The proceeds will enable the Reit to pay down about 58 per cent of the 203.9 million of loans maturing in 2026. Including the US$40 million repayment in Mar 2025 from the Plaza divestment, Manulife US Reit will pay off about 78 per cent of the loans due in 2026, with about US$45.1 million remaining. Coupled with its previous divestment of Capitol and cash contribution from the balance sheet, total debt repayment will be close to US$290 million since Nov 2024. The sale of Peachtree improves financial ratios, with Manulife US Reit's pro forma aggregate leverage expected to improve to 57.7 per cent from 60.8 per cent and pro forma weighted average interest cost is expected to reduce to 4.07 per cent from 4.53 per cent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Under the master restructuring agreement signed with Manulife US Reit's lenders, the Reit is required to achieve minimum cumulative net sales proceeds of US$328.7 million by Jun 30 2025. With the sale of Peachtree, Capitol and Plaza, Manulife US Reit would achieve about 82 per cent of its net proceeds targets. The heightened economic uncertainty surrounding trade policies and ongoing challenges hampering office transactions, such as remote and hybrid work arrangements and a lack of financing, has created a challenging environment for commercial real estate. 'We remain in active discussions on the divestment of additional properties. In view of current headwinds, we believe that disposing Peachtree would enable us to mitigate risks and achieve the best possible outcome for Unitholders,' said John Casasante, CEO and chief investment officer of the manager. The manager plans to reposition the portfolio for growth through diversification by pursuing opportunities in other real estate sectors and permissible alternative real estate investments that have attractive and accretive cash yield and are less capital-intensive. The Reit will also tap its sponsor's global real estate platform and in-house capabilities to capitalise on opportunities in the US real estate market. 'We remain focused on moving Manulife US Reit towards recovery as soon as possible so that we may return to a growth trajectory,' said Casasante. Units of Manulife US Reit closed up 5 per cent or US$0.003 to US$0.063 on Friday.
