Manulife US REIT Secures Major Lease Extension with ACE American: Investor Analysis

Key Points in the Report

• Manulife US Real Estate Investment Trust (MUST) has secured a 65-month lease extension with its fourth-largest tenant, ACE American Insurance Company (ACE), at 10 Exchange Place, Jersey City, New Jersey.
• This lease extension is effective from December 2029 to May 2035, covering ACE’s entire 117,280 sq ft office space, with rents maintained at the current rate.
• The renewal increases Exchange’s Weighted Average Lease Expiry (WALE) from 3.7 years to 4.5 years, strengthening MUST’s portfolio stability.
• ACE contributed 5.4% of MUST’s total gross rental income as of 31 December 2025, underscoring its significance as a major tenant.
• This marks the eighth renewal or expansion with a top 10 tenant since 2023, showcasing MUST’s success in retaining high-quality tenants amid a challenging office leasing environment.
• Other top tenants who renewed or expanded recently include William Carter, CoStar, Hyundai Capital, US Treasury, Amazon, Kuehne + Nagel, and Quinn Emanuel.

Detailed Analysis for Investors

The lease extension with ACE American Insurance Company represents a significant achievement for MUST, especially given the current volatility in the U.S. office space market. This is a potentially price-sensitive event for shareholders, as it:

• Locks in a major tenant for an additional five years, ensuring stable, predictable cash flows.
• Improves the WALE metric, a key indicator of portfolio resilience and the ability to withstand market shocks.
• Demonstrates the effectiveness of MUST’s strategic leasing approach in securing mutually beneficial outcomes for both tenant and landlord.
• Signals MUST’s ability to maintain rental rates, even as the pace of leasing activity in the Hudson Waterfront office market has moderated, with asking rents remaining resilient year-on-year.

From an investor perspective, this deal strengthens MUST’s fundamentals over the long term, as highlighted by CEO John Casasante, who credited strong tenant relationships and accretive leasing strategies for the success. The lease renewal with ACE, a leading global insurer, further cements MUST’s reputation for attracting and retaining creditworthy, high-quality tenants.

Strategic Importance of Exchange Place

Exchange Place is a Class A office asset in the Hudson Waterfront, the largest office submarket in Northern New Jersey (21.4 million sq ft of Class A space). Its proximity to Manhattan continues to attract major financial services and multinational occupiers. According to Cushman & Wakefield, while leasing activity has slowed in Q1 2026, rents remain resilient and the office inventory is steady, offering a favorable context for MUST’s operations.

David DeMatteis, Executive Director at Cushman & Wakefield, noted that ACE’s renewal underscores both their commitment to a best-in-class asset and confidence in the Jersey City office market.

Portfolio Overview

• MUST’s portfolio as at 31 December 2025 consists of seven freehold office properties across Arizona, California, Georgia, New Jersey, Virginia, and Washington D.C., with an aggregate net lettable area of 3.5 million sq ft.
• The sponsor, The Manufacturers Life Insurance Company (Manulife), is part of a leading financial services group with principal operations in Asia, Canada, and the United States. Manulife is listed on multiple global exchanges.
• The Manager, Manulife US Real Estate Management Pte. Ltd., aims to deliver stable distributions and long-term growth in DPU and NAV per Unit, with a focus on maintaining an appropriate capital structure.

Implications for Shareholders

• Stability and resilience: The extension with ACE significantly reduces leasing risk and improves income visibility for MUST, which can positively impact share values.
• Tenant retention: MUST’s continued success in renewing leases with top tenants, particularly in a challenging market, positions the REIT favorably compared to peers.
• Portfolio WALE enhancement: With the WALE extension, MUST’s portfolio is better positioned to withstand any downturn in office leasing demand.
• Cash flow security: Retention of a major tenant at unchanged rental rates supports stable cash flows, a critical concern for REIT investors.

Contact Information

For further queries, investors may contact:
Lee Meixian (Senior Manager, Investor Relations & Communications)
Email: [email protected] | Phone: +65 8777 6206
Wylyn Liu (Head of Investor Relations)
Email: [email protected] | Phone: +65 9788 6385

Disclaimer

This article is for information purposes only and does not constitute an offer, invitation, or solicitation to purchase or subscribe for any securities of Manulife US REIT. The value of units and income derived from them may fall as well as rise. Investments in the units are subject to risks, including possible loss of principal. Investors should consult their financial advisors before making investment decisions. Past performance is not necessarily indicative of future performance.

View ManulifeReit USD Historical chart here