Manulife Us Reit · SGX:BTOU
Manulife Us Reit — Investor Presentation (May 2021)
15 slides from Manulife Us Reit's investor presentation, May 19, 2021
Slide 1: U.S. Office Research Presentation
U.S. Office Research Presentation Manulife US REIT May 19, 2021
Slide 2: U.S. office and economy barometer
U.S. office and economy barometer Indicator Sentiment Commentary Employment growth Job growth accelerated in March, with 916,000 jobs added and unemployment falling to 6% Economic growth GDP growth forecasts call for very robust (6% - 8%) expansion by Q4 2021 Equity markets NASDAQ up > 40% and S&P 5
Slide 3: Economic and office market indicators
Economic and office market indicators Average annual sales ($ Market 5-year job growth (%) Unemployment rate (%) Vacancy rate (%) 5-year rent growth (%) Cap rate (%) million) trailing 5Y Austin 13.6% 5.3% 14.6% 51.0% $1,974.6 6.1% Boston 0.4% 5.9% 15.9% 23.7% $8,028.9 5.9% Charlotte 6.2% 4.6% 13.3%
Slide 4: Emerging office markets are benefitting from spillover demand among high-growth tenants
Emerging office markets are benefitting from spillover demand among high-growth tenants Seattle Nashville -1.1% Google Salt Lake City -1.3% More stable Facebook Dallas occupancy -1.5% Anaplan Minn. Miami levels -2.1% Google Charlotte -2.5% Allstate Pitt. Raleigh -2.7% Austin -2.8% DoorDash AllianceB
Slide 5: Population growth across most emerging markets exceeds the U.S. average
Population growth across most emerging markets exceeds the U.S. average Austin 29.8% Phoenix 18.0% Nashville 17.5% Charlotte 17.5% Seattle 15.7% Salt Lake City 13.3% Columbus 11.6% Minneapolis 9.2% Boston 7.0% United States 6.1% Pittsburgh -1.6% -5% 0% 5% 10% 15% 20% 25% 30% 35% 2010-present populat
Slide 6: Factors influencing migration trends
Factors influencing migration trends • Sun Belt and Mountain West markets have emerged as drivers of population growth and tenant demand • The COVID-19 pandemic has accelerated migration trends, with new “work-from-anywhere” policies spurring a Affordability Quality of life rapid reshuffling of the
Slide 7: Recent population migration data underscores the shift in living preferences
Recent population migration data underscores the shift in living preferences Most popular migration routes since the onset of COVID Inbound market Change per 10,000 residents Outbound market Austin 16.7 San Francisco Austin 11.6 New York Seattle 10.9 San Francisco Denver 9.1 New York Nashville 8.7 C
Slide 8: STEM talent is instrumental to growth potential
Science, technology, engineering and mathematics (STEM) talent is instrumental to growth potential Seattle 45.3% Boston 42.3% Tech Life sciences Austin 40.8% Entertainment Media Minneapolis 36.1% Salt Lake City 36.0% United States 35.4% Pittsburgh 34.0% Columbus 33.7% Compliance Finance Phoenix 33.5
Slide 9: Top marginal state income tax rate (%)
Lower tax liability is one of the greatest “push factors” from California, New York and New Jersey 14% 13.30% 12% Top marginal state income tax rate (%) 10.75% 9.85% 10% 8.82% 8.00% 8% 6% 5.25% 5.00% 4.95% 4.80% 4% 3.07% 2% 0.00% 0.00% 0.00% 0% CA NJ NY MN AZ NC MA UT OH PA WA TX TN Relative tax sav
Slide 10: Affordability extends to office space, where tenants are drawn to potential cost savings
Affordability extends to office space, where tenants are drawn to potential cost savings New York (Midtown) $96.32 San Francisco $86.94 Washington, DC $67.52 Los Angeles (Westside) $65.52 Boston $78.38 Austin $64.78 Seattle $55.28 Nashville $41.58 Charlotte $38.54 Salt Lake City $34.54 Pittsburgh $3
Slide 11: Convergence of talent, quality of life and costs are foundational elements of market attractiveness
Convergence of talent, quality of life and costs are foundational elements of market attractiveness TALENT POOL High levels of educational attainment Spillover Inbound STEM and creative sector strength demand migration Critical Diversity of ages and backgrounds mass of skilled Sustained population g
Slide 12: 5-year Class A net absorption (% of inventory)
Office occupancy growth has been particularly strong throughout low-tax, low-cost markets 25% 5-year Class A net absorption (% of inventory) 20% 19.1% 16.6% 15.8% 15.9% 15% 9.5% 10% 5.9% 5% 3.1% 2.6% 1.6% 0% -0.6% -5% Pittsburgh Columbus Boston Minneapolis Seattle Charlotte Phoenix Salt Lake City Au
Slide 13: These markets also exceed national averages in economic productivity and output
These markets also exceed national averages in economic productivity and output 60% Austin Seattle 50% U.S. average GDP growth since 2010 (%) 40% Nashville Salt Lake City Phoenix Charlotte 30% Columbus U.S. average Boston 20% Minneapolis Pittsburgh 10% $50,000 $60,000 $70,000 $80,000 $90,000 $100,00
Slide 14: Quality impacts leasing and investment decisions
Quality impacts leasing and investment decisions Bakery Square Design Center Tower Grandview Yard Foundry T3 5 Necco Street Pittsburgh Charlotte Columbus Austin Minneapolis Boston 792,444 s.f. 375,000 s.f. 338,937 s.f. 236,436 s.f. 221,552 s.f. 87,163 s.f. Google Unity Amazon Spaces Lowe’s Nationwid
Slide 15: Thank You
Thank You Disclaimer: All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof. This document has been prepared by JLL for the client, and JLL does not intend that any other person accept or rely on it. It is provided on