Manulife US REIT: Deutsche initiate coverage due to stable yield with embedded growth
-96% of FY16 and 87% of FY17 cash rental expected from existing leases, providing stable income base
-long WALE of 5.7 years and healthy occupancy of 96.5%
-hence limited risk to tenant movements and distributable income
-99% of existing leases also have built-in rental increases
-sponsor Manulife has a robust real estate deal pipeline that could help the REIT grow inorganically
-Deutsche initiates with a Buy and TP of US$90 (11% potential upside from last close)
-Forecast 7.5% distribution yield of FY17
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