United Hampshire US REIT has declared a distribution per unit (DPU) of 1.78 US cents (2.44 Singapore cents) from March 12 to June 30, in line with its IPO forecast.
Distributable income for the same period stood at US$8.79 million, a slight 0.2% above its IPO forecast of US$8.77 million.
Gross revenue fell 3.5% below its forecast at US$15.3 million, while property expenses for the period stood at US$4.5 million.
The lower gross revenue was largely due to lower reimbursable expense recoveries pertaining to Grocery & Necessity Properties.
In addition, there was a drop in leasing activities for SelfStorage Properties at the onset of the pandemic due to shelter-in-place guidelines, and a delay in completion of Perth Amboy Self-Storage.
Accordingly, net property income (NPI) fell 5.5% below forecast at US$11.3 million, mainly due to the lower gross revenue and other operating income. The lower NPI was also due to a provision of US$0.3 million for rent relief currently under negotiation, and partially offset by lower repair and maintenance expenses.
As at June 30, the REIT has an occupancy rate of 95%, with a weighted average lease expiry (WALE) of 8.4 years. Excluding forward committed leases, the REIT’s WALE is 8.1 years.
Cash and cash equivalents as at June 30 stood at US$11.8 million.
Units in United Hampshire US REIT closed 1 cent higher, or 1.9% up, at 54 US cents on Aug 12 prior to the results announcement.
