The manager of United Hampshire US REIT (UHREIT) has declared a distribution per unit (DPU) of 2.91 US cents (3.99 cents) for the 1HFY2022 ended June, 4.6% lower y-o-y.
During the period, the REIT had a total of 559.95 million units in issue compared to the 498.5 million units in the same period the year before.
Gross revenue in the 1HFY2022 increased by 18.5% y-o-y to US$31.8 million mainly due to the contributions from Colonial Square and Penrose Plaza and the improved performance from Self-Storage Properties. Colonial Square and Penrose Plaza were both completed in November 2021.
Other income of US$0.2 million stood US$1.9 million lower y-o-y. This is mainly due to the lower top-ups as well as the absence of the compensatory stipulated damage income of US$0.7 million in connection with the delayed completion of construction of Perth Amboy Self-Storage.
Net property income (NPI) for the 1HFY2022 increased by 10.0% y-o-y to US$9.3 million.
Distributable income rose by 7.2% y-o-y to US$16.3 million.
Excluding top-ups and stipulated damages, adjusted DPU for the 1HFY2022 was up by 13.4% y-o-y.
As at June 30, portfolio occupancy stood at 96.2% with a weighted average lease expiry (WALE) of 8.0 years.
As at June 30, the REIT’s aggregate leverage stood at 38.0%.
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Cash and cash equivalents for the period stood at US$12.6 million.
“We have seen significant increases in our gross revenue, net property income and distributable income. This performance is backed by strong leasing momentum at our existing properties as well as continued contributions from our first two acquisitions – Colonial Square and Penrose Plaza,” says Robert Schmitt, CEO of the manager.
“Our latest DPU accretive acquisition of Upland Square, a freehold grocery-anchored property in Pennsylvania, further extends UHREIT’s presence in the affluent Eastern seaboard and is set to bring in positive contributions from 2HFY2022. In addition to further growing UHREIT’s portfolio size, the property’s larger distributable income base substantially enhances UHREIT’s income visibility and resilience,” he adds.
As at June 30, the REIT’s total asset valuation stood at US$732.9 million, up by 25.4% y-o-y.
With the concerns over the slowing US economy, the REIT manager says it is focused on optimising its portfolio performance whilst leveraging its extensive network to selectively look for opportunities to extend its exposure to the resilient grocery and necessity sector in the affluent and populous Eastern seaboard markets.
As at 10.31am, shares in UHREIT are trading flat at 62.5 US cents.
