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 Operation8.7% 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.
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- OutsiderLEO·09-04TOPIt's important to conduct thorough research and due diligence before making any investment decision.2Report
- jethro·09-06thanks for sharing1Report