Basic Profile & Key Statistics
United Hampshire US REIT (UHREIT) invests in Retail and Logistics (self-storage) properties which currently owns 24 properties in U.S.
Performance Highlight
As compared to 2H 2020, gross revenue, NPI, distributable income and DPU have improved YoY due to higher contribution from self-storage properties as well as newly acquired properties.
Tenant Sales
Tenant sales has improved YoY for the 4 anchor tenants.
Acquisition
In November 2021, UHREIT has completed the acquisition of Penrose Plaza and Colonial Square.
Divestment
UHREIT has announced for proposed divestment for Elizabeth and Perth Amboy self-storage properties. The divestment gain is at US$ 3.1 mil, which is around 7% over valuation. This divestment is expected to be complete by 2Q 2022.Related Parties Shareholding
- REIT sponsor's shareholding is low at 0.063%
- REIT manager's shareholding is low at 0.376%
- Directors of REIT manager's shareholding is high at 0.439%
Lease Profile
- Occupancy is slightly high at 95.3%
- WALE is long at 8 years
- Highest lease expiry within 5 years is low at 9.3% which falls in 2024
- Weighted average land lease expiry is long at 97.55 years
Debt Profile
- Gearing ratio is moderate at 39%
- Cost of debt is high at 2.63%
- Fixed rate debt % is slightly high at 79.6%
- All debts are secured debts
- WADM is short at 2.5 years
- Highest debt maturity within 5 years is high at 50%, which falls in 2024
- Interest coverage ratio is high at 6.5 times
Diversification Profile
- Top geographical contribution is low at 32.4%
- Top property contribution is low at 13.9%
- Top 5 properties contribution is low at 43%
- Top tenant contribution is moderate at 13%
- Top 10 tenants contribution is high at 64.8%
Key Financial Metrics
- Property yield is high at 6.6%
- Management fees over distribution is low at 10.1% in which unitholders receive US$ 9.90 for every dollar paid
- Distribution on capital is high at 5%
- Distribution margin is moderate at 48.3%
- 9.8% of the TTM DPU is from income support
Trends
- Uptrend - Interest Coverage Ratio, Distribution Margin
- Slight Uptrend - Property Yield
- Flat - DPU, NAV per Unit, Distribution on Capital
Relative Valuation
- P/NAV - Below -1SD for 1y, Average for 3y
- Dividend Yield - Above +1SD for 1y, Average for 3y
Author's Opinion
The full half yearly contribution from the 2 newly acquired properties would improve UHREIT performance moving forward. However, it would be offset by loss of income from the divestment of Elizabeth and Perth Amboy self-storage properties which is target to complete by 2Q 2022. Let's see later whether managements would acquire any property after the divestment.
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SREITs Dashboard @https://www.reit-tirement.com/p/sreits-dashboard.html- Detailed information on individual Singapore REIT
SREITs Data @https://www.reit-tirement.com/p/sreit-data.html- Overview and Detail of Singapore REIT
REIT Analysis @https://www.reit-tirement.com/p/reits-analysis.html- List of previous REIT analysis posts
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