I realize I have not written any updates on Manulife US REIT’s latest acquisition. So here it is.
Just a short update.
This year, majority of the REITs have seen their share price appreciating. With the share price appreciation, the cost of equity (which in this case, is the dividend yield the REIT pays to you) have gone down.
This makes equity raising much attractive and for them to bring acquisitions on board. This increases the AUM, the net property income and therefore the fees earned.
Manulife US REIT made the acquisition of Centerpointe in the Washington sub-market in April this year. I have a hunch that if they have the opportunity, there will be further acquisitions.
In their latest quarter results slides, there was an emphasis on how close their liquid market capitalization is from an incursion to FTSE EPRA NAREIT Developed Asia Index.
More of less, something is