Manulife US REIT's occupancy drops to 88.1% in Q3

The decline was largely due to downsizing at its Figueroa office building.

Manulife US REIT recorded a lower occupancy rate in Q3 of 88.1%.

In a bourse filing, the REIT said the decline in its occupancy was largely due to the downsizing of the Quinn Emanuel law firm at Figueroa.

The space occupied by the firm at the office building got cut by 71,000 square feet.

More than half (56.8%) of the REIT's leases in Q3 were new, and the rest (43.2%) were renewals.

Most of its leasees were from the real estate industry (37%) and the finance and insurance sector (21%)

Whilst its occupancy rate dropped, the REIT was able to post a positive rental reversion of 4.3% in Q3.

Year-to-date, the REIT's rental reversion is 1.7%.

The REIT also maintained a long weighted average lease expiry (WALE) of 6.2 years for leases executed in Q3.