United Hampshire US REIT has reported a distributable income of US$7.1 million ($9.6 million) for the 3QFY2023 ended Sept 30, 5.2% lower y-o-y. Distributable income for the 9MFY2023 fell by 0.3% y-o-y to US$23.7 million.
The manager has elected to receive 100% of its base fee of US$0.8 million for the quarter in cash. Without that, 3QFY2023 distributable income would have been at US$7.9 million while 9MFY2023 distributable income would have been at US$24.5 million.
According to the manager, it opted to receive its fee in cash to minimise a dilution in the REIT’s unit base.
3QFY2023 gross revenue rose by 8.5% y-o-y to US$18.4 million while net property income (NPI) rose by 8.7% y-o-y to US$12.9 million.
9MFY2023 gross revenue rose by 11.7% y-o-y to US$54.4 million while NPI rose by 12.2% y-o-y to US$38.7 million both due to contributions from recently renewed leases, rental escalations from existing leases and from the REIT’s latest acquisition, Upland Square.
As at Sept 30, the REIT’s portfolio occupancy stood at 97.2% for its grocery and necessity properties. Its weighted average lease expiry (WALE) stood at 7.2 years. Excluding forward committed leases, the REIT’s WALE stood at 7.0 years.
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Aggregate leverage as at Sept 30 stood at 41.7% with an interest coverage ratio of 2.7x. As at the same period, the REIT’s fixed-rate debt stood at 80.9%.
“UHREIT has continued to deliver resilient performance for this quarter, with healthy leasing momentum across our portfolio. Committed occupancy at our grocery & necessity properties remains high at 97.2%, supported by a diversified tenant base of which, 63.6% provide essential goods and services,” says Gerard Yuen, CEO of the manager.
“We are also pleased to share that construction of the new 63,000 sq ft Academy Sports + Outdoors (Academy Sports) store at Port St. Lucie is ahead of schedule. We have completed the required landlord work at the property with construction of the building being completed. Academy Sports is in the process of completing its interior build-out with the anticipation of opening the store ahead of schedule in November 2023. This new store will enhance the financial performance of the property and is also expected to generate a significant increase in foot-traffic at the property,” he adds.
As at 10.16am, UHREIT’s units are trading flat at 39.5 US cents.
