United Hampshire US REIT's 1H FY24 Result Review

Basic Profile & Key Statistics

Key Indicators

Performance Highlight

Gross revenue increased slightly YoY, driven by new leases, rental escalations, and income from the Academy Sports + Outdoors store at St. Lucie West, which began operations in November 2023. However, NPI decreased slightly due to higher property expenses. Combined with rising finance costs and management fees fully in cash, income available for distribution and DPU declined YoY.

Divestment

On 14 August, UHREIT finalized the sale of Lowe’s and Sam’s Club within Hudson Valley Plaza at a premium above purchase price and book value.

Related Parties Shareholding

Directors of the REIT manager hold a relatively high shareholding, while the sponsor and manager have a relatively low proportion.

Lease Profile

The properties have a long WALE, with a well-spread lease expiry. Plus, the majority of these properties are freehold.

Debt Profile

The cost of debt is high, with a relatively low proportion of fixed-rate debt, low adjusted interest coverage ratio and 0% unsecured debt.

Diversification Profile

The portfolio demonstrates geographical and property diversification but is concentrated on tenants.

Key Financial Metrics

Property yield and operating distribution proportion are high. In addition, the management fee is low compared to operating distributable income.

DPU Breakdown

• TTM Distribution Breakdown:
• 91.3% from Operation
• 8.7% being Retained

Trends (Up to 10 Years)

• Uptrend: Operating Distributable Income over Manager's Fees, Operating Distribution Proportion
• Slight Uptrend: Committed Occupancy
• Flat: DPU from Operation, NAV per Unit, Property Yield
• Slight Downtrend: Operating Distributable Income on Capital
• Downtrend: Adjusted Interest Coverage Ratio, Operating Distributable Income Margin

Price Range & Relative Valuation Metrics

• Dividend Yield - Average for 1y, 3y & 5y
• P/NAV - Average for 1y & 3y; Below -1SD for 5y

Author's Opinion

Compared to the previous half-year, gross revenue and NPI have remained similar, but income available for distribution and DPU have declined due to increased finance costs. For debt, no refinancing is required until December 2025.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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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 findings and should not be considered 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 decisions.