Manulife US REIT (MUS) has been one of the top-performing real estate investment trusts (REITs) in the United States in 2020. The REIT has seen its asset values fall by 17% since the start of the year, yet it has still managed to yield an impressive 17% return on its investments. This is even though the REIT is approaching its regulatory leverage limit of 50%.
MUS is a REIT that invests in office and industrial properties in the United States. It was launched in 2019 and is managed by Manulife Investment Management, a subsidiary of Manulife Financial Corporation. The REIT has been able to generate strong returns due to its focus on high-quality assets and its ability to take advantage of market opportunities.
The REIT has seen its asset values fall due to the economic impacts of the COVID-19 pandemic. Many of its tenants have been forced to close their businesses or reduce their operations, resulting in lower rental income for the REIT. Additionally, the REIT has had to write down the value of some of its assets due to the decline in market values.
Despite these challenges, MUS has still generated an impressive 17% investment return. This is because the REIT has been able to take advantage of market opportunities and has been able to maintain a relatively low level of debt. The REIT’s debt-to-asset ratio is currently at 44%, which is well below the regulatory leverage limit of 50%.
The REIT’s strong performance has been driven by its focus on high-quality assets and its ability to take advantage of market opportunities. The REIT has invested in a diversified portfolio of office and industrial properties across the United States, which have provided it with a steady stream of rental income. Additionally, the REIT has taken advantage of market opportunities by investing in distressed assets at attractive prices.
The REIT’s strong performance has also been supported by its conservative approach to financing. The REIT’s debt-to-asset ratio is currently at 44%, which is well below the regulatory leverage limit of 50%. This conservative approach to financing has allowed the REIT to maintain a strong balance sheet and generate strong returns for its investors.
Overall, Manulife US REIT was one of the top-performing REITs in the United States in 2020. Despite the economic impacts of the COVID-19 pandemic, the REIT has still managed to generate an impressive 17% return on its investments. This is due to its focus on high-quality assets and its ability to take advantage of market opportunities. Additionally, the REIT’s conservative approach to financing has allowed it to maintain a strong balance sheet and generate strong returns for its investors.