United Hampshire US REIT's 1H FY25 Result Review

REIT_TIREMENT
09-03

$UtdHampshReitUSD(ODBU.SI)$

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue and NPI have declined YoY due to the absence of contributions from three properties divested between August 2024 and January 2025. Distributable income rose 2.4%, and DPU grew 4.0% year-on-year, driven by lower finance costs from reduced interest rates and borrowings, as well as lower retention.

Acquisition

On 1 August 2025, UHREIT completed the acquisition of Dover Marketplace in Pennsylvania for US$16.4 million, approximately 4.8% below independent valuation. The purchase was fully funded using proceeds from the divestment of Albany Supermarket.

Divestment

On 16 January 2025, UHREIT divested Albany Supermarket in New York at 4.2% above its purchase price.

Development

UHREIT plans to develop a new 5,000 sq ft store on excess land in St. Lucie West, pre-leased to Florida Blue on a 10-year lease. Completion is targeted for Q4 2026.

Related Parties Shareholding

  • REIT Sponsor's Shareholding: Less Favorable

  • REIT Manager's Shareholding: Less Favorable

  • Directors of REIT Manager's Shareholding: Favorable

Lease Profile

  • Occupancy: Moderate

  • Highest Annual Lease Expiry in 4 Years: Favorable

  • WALE: Favorable

  • Weighted Average Land Lease Expiry: Favorable

Debt Profile

  • Adjusted Interest Coverage Ratio: Moderate

  • Cost of Debt: Less Favorable

  • Gearing Ratio: Moderate

  • Fixed Rate Debt Proportion: Moderate

  • Unsecured Debt Proportion: Less Favorable

  • Highest Annual Debt Maturity in 4 Years: Less Favorable

  • WADM: Less Favorable

Diversification Profile

  • Top Geographical Weightage: Favorable

  • Top Property Weightage: Moderate

  • Top 5 Properties' Weightage: Favorable

  • Top Tenant Weightage: Moderate

  • Top 10 Tenants' Weightage: Less Favorable

Key Financial Metrics

  • Property Yield: Favorable

  • Manager's Fees over Operating Distributable Income: Favorable

  • Operating Distributable Income on Capital: Favorable

  • Operating Distributable Income Margin: Moderate

  • Operating Distribution Proportion: Favorable

DPU Breakdown

  • TTM Distribution Breakdown:95.2% from Operation4.8% being Retained

Trends (Up to 10 Years)

  • Uptrend: Top 5 Properties' Weightage, Operating Distributable Income over Manager's Fees, Operating Distribution Proportion

  • Slight Uptrend: Committed Occupancy

  • Flat: NAV per Unit, Property Yield

  • Slight Downtrend: DPU from Operations

  • Downtrend: Adjusted Interest Coverage Ratio, Top 10 Tenants' Weightage, Operating Distributable Income on Capital, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

  • Dividend Yield: Average for 1y; Below -1SD for 3y & 5y & 10y

  • P/NAV: Above +1SD for 1y; Average for 3y & 5y & 10y

Author's Opinion

Compared to the previous half-year, gross revenue and NPI declined due to divestments, but DPU and distributable income improved on the back of lower financing costs, higher finance income and reduced retention. On the debt front, around 17% of debt matures in December 2025.

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my own findings and should not be considered as professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decision.

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