United Hampshire US Reit Q3 distributable income up 8.1% to US$8.3m

UNITED Hampshire US Real Estate Investment Trust : ODBU 0% (United Hampshire US Reit) on Wednesday (Nov 9) posted an 8.1 per cent rise in distributable income to US$8.3 million for the third quarter ended Sep 30, compared with US$7.7 million the year before.

Gross revenue climbed 24.7 per cent to US$17 million from US$13.6 million, while net property income (NPI) rose 15.2 per cent to US$11.9 million from US$10.3 million in the year-ago period.

The Reit’s financial performance was boosted by contributions from the newly-acquired Upland Square Shopping Center and upward-trending rents on self-storage properties, partially offset by higher interest costs and the absence of top-ups, the manager said.

For the year-to-date period, distributable income was US$24.6 million, 7.5 per cent higher than the US$22.9 million recorded a year ago. Gross revenue was 20.6 per cent higher at US$48.7 million from US$40.4 million, while NPI was up 12.1 per cent to US$34.5 million from US$30.8 million.

The manager said the acquisition of Upland Square has increased tenant diversification, decreasing contributions from the top 10 tenants to 56.2 per cent in Q3 2022 from 66.1 per cent in Q3 2021. It has also maintained the portfolio focus on cycle-agnostic tenants providing essential services.

United Hampshire US Reit’s weighted average lease expiry (WALE) stood at 7.6 years for its grocery and necessity properties, including forward committed leases. Excluding these leases, WALE was 7.5 years as at Sep 30.

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Its portfolio currently comprises 21 grocery and necessity properties at two self-storage properties located across eight states on the US East coast.

The Reit has an aggregate leverage of 42.1 per cent as at Sep 30 and an interest coverage ratio of 5.6 times. The manager said it is in negotiations with both existing and new lenders on refinancing options for its loan facilities maturing after 2022. It has no debt maturing in 2022.

The counter closed 1 per cent or US$0.005 lower at US$0.48 on Tuesday.