To The Moon

$UtdHampshReitUSD(ODBU.SI)$

Basic Profile & Key Statistics

• Main Sector(s): Retail & Logistics (Self-Storage)

• Country(s) with Assets: United States

• No. of Properties (exclude development/associate/fund): 23

Key Indicators

Performance Highlight

Gross revenue, NPI and distributable income increased YoY mainly due to contributions from Upland Square which was acquired in Jul 2022.

Development

Construction of the new store expansion on ST. Lucie West excess land has commenced site work and is expected to be completed in 2024.

Related Parties Shareholding

• REIT Sponsor's Shareholding: Below median by 20% or more

• REIT Manager's Shareholding: ± 10% from median

• Directors of REIT Manager's Shareholding: Above median by 20% or more

Lease Profile

• Occupancy: ± 5% from median

• WALE: Above median by 20% or more

• Highest Lease Expiry within 5 Years: Below median by 20% or more; Falls in 2027

• Weighted Average Land Lease Expiry: Above median by 20% or more

Debt Profile

• Gearing Ratio: Above median by 10% or more

• Cost of Debt: Below median by 10% or more

• Fixed Rate Debt %: ± 10% from median

• Unsecured Debt %: 0%

• WADM: Above median by 10% or more

• Highest Debt Maturity within 5 Years: ± 10% from median; Falls in 2026

• Interest Coverage Ratio: Below median by 10% or more

Diversification Profile

• Top Geographical Contribution: Below median by 20% or more

• Top Property Contribution: Below median by 20% or more

• Top 5 Properties' Contribution: Below median by 20% or more

• Top Tenant Contribution: ± 10% from median

• Top 10 Tenants' Contribution: Above median by 20% or more

Key Financial Metrics

• Property Yield: Above median by 20% or more

• Management Fees over Operating Distributable Income: Below median by 20% or more; $9.09 distribution for every dollar paid 

• Operating Distributable Income on Capital: Above median by 20% or more

• Operating Distributable Income Margin: ± 10% from median

• Operating Distribution Proportion: ± 5% from median

DPU Breakdown

• TTM DPU Breakdown:89.8% from Operation9.9% from Management Fees Paid in Units0.3% from Income Support

Trends

• Uptrend: DPU from Operation, Occupancy

• Flat: NAV per Unit, Property Yield, Operating Distributable Income Margin, Operating Distributable Income Margin

• Downtrend: Interest Coverage Ratio

Relative Valuation

• P/NAV: Below -1SD for 1y, 3y & 5y

• Dividend Yield: Above +1SD for 1y; Above +2SD for 3y & 5y

Author's Opinion

Despite a decline in gross revenue, NPI improved in the current quarter compared to the previous one. Additionally, there is no debt refinancing requirement in 2023, and the fixed-rate debt proportion of 80.2% is slightly higher than the median level for SREITs. Although the DPU has remained flat since the IPO, the DPU from operation has been steadily improving. Overall, its performance and fundamentals remain resilient.

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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 decisions.