Manulife US REIT posts 15.5% YoY lower distributable income of US$74.3m in FY23

The REIT attributed the decrease to lower rental and recoveries income.

Despite recording a higher net property income (NPI) in FY23, Manulife US REIT’s (MUST) distributable income still fell 15.5% YoY to US$74.3m.

In FY23, MUST posted an NPI of US$114.6m, a 1.3% increase from FY22.

The REIT attributed its lower distributable income “to lower rental and recoveries income due to higher vacancies and higher property expenses, higher finance costs as a result of rising interest rates, and the divestment of Tanasbourne in April 2023 and Park Place in December 2023, partially offset by higher lease termination fees and car park income. “

Under the REIT’s recapitalisation plan, MUST will halt distributions to unitholders until 31 December 2025 unless the early reinstatement conditions, as defined in the circular, are achieved earlier.