United Hampshire US Reit distributable income rises 7.9% in Q1 2022

UNITED Hampshire US Real Estate Investment Trust (UHReit) on Thursday (May 12) reported a 7.9 per cent increase in its distributable income to US$8.1 million for the first quarter ended Mar 31, 2022, compared with the US$7.6 million in the corresponding period last year.

UHReit, which focuses on grocery-anchored shopping centres and self-storage properties in the US, said the acquisitions of Colonial Square and Penrose Plaza in November 2021 contributed positively to the latest quarter’s distributable income.

Gross revenue rose 20 per cent year on year to US$16.2 million, while net property income was up 13.1 per cent to US$11.4 million.

Chief executive of UHReit’s manager, Robert Schmitt, noted the “robust leasing momentum” at its existing properties. In the first quarter, it executed 10 new and renewal leases totalling about 79,928 square feet.

Occupancy levels at its grocery and necessity properties improved further to 96.4 per cent as at Mar 31 this year, the highest since UHReit’s initial public offering in March 2020, and up from 95.3 per cent at the end of last year.

Schmitt said the cycle-agnostic tenants providing essential services have continued to benefit from adopting omnichannel strategies. “We have also observed that many retailers with a physical store presence have experienced stronger online sales as these networks make returns or exchanges easier for consumers.”

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He added that UHReit’s manager will continue to work with its tenants to leverage this “renewed balance” between online and physical store sales.

Units of United Hampshire US Reit : ODBU 0% finished US$0.01 or 1.6 per cent lower at US$0.61 on Thursday, before the business update was released.