Manulife Us Reit · SGX:BTOU
Manulife Us Reit — Investor Presentation (August 2017)
28 slides from Manulife Us Reit's investor presentation, Aug 8, 2017
Slide 1: Sponsor's Overview & US Real Estate Market
Sponsor’s Overview & US Real Estate Market 8 August 2017 PPM.389383
Slide 2: Table of Contents
Table of Contents Manulife Real Estate 3 US Commercial Real Estate 8 View on US Office Market Outlook 11 Appendix 26 All figures in US dollars unless otherwise noted. 2 PPM.389383
Slide 3: Manulife Real Estate
Manulife Real Estate MM Manulife | US REIT
Slide 4: Global Financial Services Firm
Global Financial Services Firm Key facts about Manulife: Fourth largest life insurance company in North America by market capitalization1 $754 billion in assets under management and administration2 Financial strength ratings3: S&P AA- Fitch AA- Moody’s A1 A.M. Best A+ A leading Canad
Slide 5: Manulife Real Estate
Manulife Real Estate Portfolio by Geography and Property Type Property Type2 Global $16.2 billion AUM. 62.1 million Square Feet 574 Employees 40% 9% US1 Canada1 Asia Office Industrial Downtown 15% 7% Office Residential Suburban $8.1B AUM $6.5B AUM $1.7B AUM 26.1M Square Feet 34.6M Square Feet 1.4M S
Slide 6: Manulife Asset Management
Manulife Asset Management Managing $16.2 billion in Real Estate Assets1 Manulife has been investing in and US Office Assets4 managing direct core and core plus real estate for more than 80 years Manages $14.8 billion of real estate in net asset value, $16.2 billion in market value1, of which $3.8 bi
Slide 7: Sponsor's Property Investment Process
Sponsor’s Property Investment Process Vertically integrated investment team works together Property Mgmt. Portfolio Management Transactions Team Asset Management and Leasing (Top Down) (Bottom Up) (Property-Level Ops) • Develops portfolio • Sources assets for • Develops strategic plans Property Mana
Slide 8: US Commercial Real Estate
US Commercial Real Estate 8 PPM.389383
Slide 9: Sponsor's US Commercial Real Estate Experience
Sponsor’s US Commercial Real Estate Experience Portfolio Overview Property Type3 Assets Under Management: $8.1 billion1 Number of Properties 84 Complexes Total Square Feet 26.1M SF Portfolio Occupancy 93% Total Residential Units Over 3,000 54% 8% Office Industrial Total Commercial Tenants2 Over 1,00
Slide 10: Sponsor's Recent Office Acquisitions in the US
Sponsor’s Recent Office Acquisitions in the US1 5000 Birch Street 1750 Pennsylvania Avenue Newport Beach, CA Washington, D.C. Two building 306,000 SF Class ‘A’ 13-story, 278,916 SF Class ‘A’ LEED office project Gold office building located in the Built in 1982 Central Business District 73% l
Slide 11: View on US Office Market Outlook
View on US Office Market Outlook 11
Slide 12: US Economic Outlook
US Economic Outlook GDP Growth and Small Business Confidence Real GDP growth and Inflation GDP Growth GDP (annual % real change) Inflation (annual % change) US economy is on strong footing and we expect economic growth to 4.0 continue in the medium-term Forecast 3.0 However, investors have becom
Slide 13: US Economic Outlook
US Economic Outlook Unemployment Rate and Interest Rate Unemployment rate Overall Bachelor's degree and higher, 25 yrs. & over Unemployment 12.0 US labor market is very healthy 10.0 with latest unemployment data for June 2017 at 4.4%; reaching pre- 8.0 crisis lows 6.0 Unemployment for educated l
Slide 14: US Economic Outlook
US Economic Outlook 0.0% 1.0% 2.0% 3.0% 4.0% Employment by Metro Employees on nonfarm payrolls, 12 Month % change, as of June 2017 San Francisco Employment by Metro 0.0% Nashville 1.0% 2.0% 3.0% 4.0% Top metros for employment growth Austin have been predominantly from the 0.0% 1.0% 2.0% 3.0% 4.0%
Slide 15: US Economic Outlook
US Economic Outlook Impact of Trump Administration Range of Policies Most policy targets of the Trump administration are aimed at creating jobs, increasing wages but are also expected to be inflationary, all of which can potentially have a positive impact on commercial real estate markets Howeve
Slide 16: Office Fundamentals
Office Fundamentals Office Supply, Demand & Rent Growth National Office Demand & Vacancy Supply/Demand Net Absorption Vacancy Uncertain business environment earlier in Million SF 20 19.0% the current recovery phase resulted in developments to lag demand and 15 18.0% accordingly average vacancy con
Slide 17: Office Fundamentals: Under Construction by Metro
Office Fundamentals Under Construction by Metro 0.0% 1.0% 2.0% 3.0% 4.0% Under construction as % of inventory, as of Q2 2017 10.0% San Francisco Above National Average Nashville Below National Average 9.0% Austin 0.0% 1.0% 2.0% 3.0% 4.0% 8.0% Dallas Supply by Metro San Francisco Atlanta Metros wit
Slide 18: Office Fundamentals: Rent Growth by Metro
Office Fundamentals 0.0% 1.0% 2.0% 3.0% 4.0% Rent Growth by Metro Asking Rent Growth, annual, as of Q2 2017 San Francisco 18.0% Nashville Above Average Below Average Austin 0.0% 1.0% 2.0% 3.0% 4.0% 16.0% Dallas Rent Growth by Metro 14.0% San Francisco Atlanta East Bay continues to be the top 12.0%
Slide 19: US Office CBD Key Rates
Office Fundamentals US Office CBD Key Rates Class AA Class A Class B Expected Return on Expected Return on CAP RATES FOR CAP RATES FOR Cost for Value-Add CAP RATES FOR Cost for Value-Add STABLIZED PROPERTIES Change1 STABLIZED PROPERTIES Change1 Properties Change1 STABLIZED PROPERTIES Change1 Propert
Slide 20: US Office Suburban Key Rates
Office Fundamentals US Office Suburban Key Rates Class AA Class A Class B Expected Return on Expected Return on CAP RATES FOR CAP RATES FOR Cost for Value-Add CAP RATES FOR Cost for Value-Add STABLIZED PROPERTIES Change1 STABLIZED PROPERTIES Change1 Properties Change1 STABLIZED PROPERTIES Change1 Pr
Slide 21: United States Office Rental Clock
Office Fundamentals United States Office Rental Clock Washington, DC Denver, New York Office property clock by metro San Francisco Peninsula, Silicon Valley San Francisco Atlanta, Chicago, Dallas, Nashville Austin, Boston, Salt Lake City Market cycle While there are many Los Angeles secondary mark
Slide 22: US Office Investment Market
Capital Markets US Office Investment Market USD billion Total US Commercial Real Estate Investment Total US CRE Volume $700 Investment demand for US $600 commercial real estate remains Full year $500 forecast strong. Total volume in 2016 was just shy of $500 billion and for the $400 first half of
Slide 23: US Office Investment Market
Capital Markets USD billion US Office Investment Market Global Direct Commercial Investment in Office, 2016 $160 Global Volume $135 $140 US is by far the largest and most $120 liquid commercial real estate Total Global Office Volume: market in the world $100 $330 billion With $135B investment vo
Slide 24: US Office Investment Market
Capital Markets US Office Investment Market US Direct Foreign Commercial Investment in Office, by Region, Rolling 12 month Americas Europe Middle-East & Africa Asia Pacific USD billion US Foreign Volume, by $25 Region $20 Asia Pacific has become the top source of capital for investment in $15 US o
Slide 25: Appendix
Appendix MM Manulife US REIT 25
Slide 26: Sponsor's Experienced, Stable Real Estate Investment Team
Sponsor’s Experienced, Stable Real Estate Investment Team Ted Willcocks Michael McNamara Paul Crowley Global Head of Asset Management, Global Head of Investments, Managing Director, Manulife Real Estate Manulife Real Estate US Asset Management Portfolio Manager, Officer, Officer, Hancock Capital Inv
Slide 27: Important Notes Regarding Forward-Looking Statements
Important Notes Regarding Forward-Looking Statements The statements made in this presentation include forward-looking statements regarding the estimated developments of several macroeconomic factors including but not limited to working age population growth, educational attainment, real estate metri
Slide 28: Important Notice
Important Notice This presentation is for information purposes only and does not constitute or form part of an offer, invitation or solicitation of any offer to purchase or subscribe for any securities of Manulife US REIT in Singapore or any other jurisdiction nor should it or any part of it form th
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