United Hampshire US Reit Q1 distributable income up 7.6%
Wong Pei Ting
UNITED Hampshire US real estate investment trust’s (Reit) distributable income for its first financial quarter rose 7.6 per cent on income from its third and largest acquisition, Upland Square Shopping Centre, in July 2022.
Distributable income for the three months ended Mar 31 rose to US$8.8 million, from US$8.1 million in the year-ago period, the Reit’s manager said in a business update on Friday (May 12).
Apart from the acquisition income, the manager said resilient performance of its existing properties also contributed to the rise in distributable income.
The Reit’s gross revenue for the quarter rose 11.8 per cent to US$18.1 million on the year, while its net property income rose 13.5 per cent to US$12.9 million.
Of the performance, Gerard Yuen, the chief executive officer of the manager, said: “We are delighted to report a strong performance for this quarter, with robust leasing momentum at our existing properties as well as continued positive contributions from Upland Square.”
He noted that the committed occupancy at its grocery and necessity properties has further increased to 97 per cent, backed by a diversified, cycle-agnostic tenant base providing day-to-day necessity goods and services.
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The tenant base includes large US retailer Walmart, which exercised its five-year renewal option at Hudson Valley Plaza, Yuen pointed out. Walmart is the Reit’s sixth largest tenant by gross rental income.
The lease extension is “a strong testament to the attractiveness of (the Reit’s) properties and the close relationship that we have built with our tenants, enabling them to maximise their omnichannel distribution capabilities at our open-air shopping centres”, he said.
Turning to address leasing momentum, the Reit’s manager said it remained healthy, with the execution of seven new and renewal leases totalling 217,089 square feet.
As at Mar 31, its grocery and necessity properties’ committed occupancy rate reached a high of 97 per cent, up slightly from 96.9 per cent as at Dec 31 last year, it said.
As for self-storage properties, performance has remained resilient, it added, pointing out that the occupancy rate for Carteret and Millburn stood at 91.7 per cent and 92.6 per cent respectively as at Mar 31.
Nevertheless, the manager said that as there are concerns over the slowing US economy and high interest rates, it will focus its efforts on optimising the portfolio and strengthening its income streams through asset enhancement initiatives.
Units of United Hampshire US Reit closed 1.16 per cent lower at US$0.42 on Friday.
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