Basic Profile & Key Statistics
Performance Highlight
Related Parties Shareholding
- REIT sponsor's shareholding is low at 8.91%
- REIT manager's shareholding is low at 0%
- Directors of REIT manager's shareholding is low at 0.07%
Lease Profile
- Occupancy is moderate at 94.8%
- WALE is long at 8 years
- Highest lease expiry within 5 years is low at 9.5% which falls in 2024
- Weighted average land lease expiry is long at 97.33 years
Debt Profile
- Gearing ratio is moderate at 36.4%
- Cost of debt is high at 2.85%
- All debts are fixed-rate debts
- All debts are secured debts
- WADM is moderate at 3 years
- Highest debt maturity within 5 years is high at 42.1%, which falls in 2023
- Interest coverage ratio is high at 6.6 times
Diversification Profile
- Top geographical contribution is low at 33.8 %
- Top property contribution is low at 14%
- Top 5 properties contribution is slightly low at 43.3%
- Top tenant contribution is high at 13.4%
- Top 10 tenants contribution is high at 66.5%
Key Financial Metrics
- Property yield is high at 6.6%
- Management fees over distribution is low at 10.2% in which unitholders receive US$ 9.80 for every dollar paid
- Distribution on capital is high at 5.1%
- Distribution margin is low at 44.5%
- 12.8% of the past 12 months DPU is from income support
Trends
- Uptrend - Interest Coverage Ratio, Property Yield
- Slight Uptrend - Distribution on Capital
- Flat - DPU, NAV per Unit
- Slight Downtrend - Distribution Margin
Relative Valuation
- P/NAV - Above average for 1y, above +1SD for 1y and 3y
- Dividend Yield - Below -average for 1y, below -1SD for 3y
Author's Opinion
| Favorable | Less Favorable |
|---|---|
| Long WALE | Low REIT Sponsor's Shareholding |
| Well Spread Lease Expiry | Low REIT Manager's Shareholding |
| Long Weighted Average Land Lease Expiry | Low Directors of REIT Manager's Shareholding |
| 100% Fixed Rate Debt | High Cost of Debt |
| High Interest Coverage Ratio | 0% Unsecured Debt |
| Low Top Geographical Contribution | Concentrated Debt Maturity |
| Low Top Property & Top 5 Properties Contributions | High Top Tenant & Top 10 Tenants Contributions |
| High Property Yield | Low Distribution Margin |
| Competitive Management Fees | High Income Support % |
| High Distribution on Capital | |
| Interest Coverage Ratio Uptrend | |
| Property Yield Uptrend |
UHREIT performance remains unaffected by COVID-19 due to its Grocery & Necessity properties. With the retail sales growth coupled with improving occupancy of self-storage, UHREIT performance is expected to improve in upcoming quarters. However, do note that12.8% of the past 12 months DPU is from income support.
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*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions and loss or damage as a result of the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.
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