Manulife US REIT profit falls as occupancy drops to 67.7%

Property earnings declined 13.7% alongside disposals of Capitol Plaza and Peachtree assets.

Manulife US REIT (MUST) has announced that its property portfolio was valued at $1.17b (US$913.8m) at the end of 2025, a slight decrease of 1.6% from the previous year. 

The company also reported a significant drop in financial performance, with rental income and property profits falling by 11.5% and 13.7% respectively.

The decline was mainly caused by higher vacancy rates at the Diablo and Figueroa properties, as well as the sale of three buildings—Capitol, Plaza, and Peachtree—between late 2024 and mid-2025. 

Despite these challenges, the trust successfully paid down $238m (US$186m) in debt during the year using cash and proceeds from those property sales.

The percentage of filled space across the portfolio dropped to 67.7%, down from 73.6% the year before. 

Total debt levels stood at 58.0% of the company's value, though the trust has very little debt due for repayment in 2026. 

Investors should note that payouts remain suspended as part of a restructuring agreement with the company's lenders.

Looking ahead to 2026, the company is prioritising a "Growth and Value Up Plan." 

CEO John Casasante stated that the goal is to sell more assets by June 2026 to further reduce debt and strengthen the company's cash position. 

The manager is also looking to move beyond office buildings by potentially investing in industrial, residential, and retail properties to ensure more stable growth in the long term.

($1.00 = US$0.87)