REIT-TIREMENT - REITs Investing & Personal Finance

REITs investing & personal finance

Thursday, November 17, 2022

United Hampshire US REIT Review @ 17 November 2022

Basic Profile & Key Statistics
  • Main Sector(s): Retail & Logistics (Self-Storage)
  • Country(s) with Assets: United States
  • No. of Properties (exclude development/associate/fund): 23

Key Indicators

Performance Highlight
For 3Q, gross revenue, NPI and distributable income have improved yoy mainly due to the contributions from newly acquired Upland Square and the improved rent of the Self-Storage Properties. DPU was lowered due to the absence of one-off stipulated damages and significantly lower top-ups from self-storage properties.

On 28th Jul, UHREIT completed the acquisition of Upland Square.

Sensitivity to Interest Rate
For every 0.5% increase in interest rate, the impact on DPU is 0.053 cents, around 0.89%.

Related Parties Shareholding

  • REIT sponsor's shareholding: Below median for more than 20%
  • REIT manager's shareholding: Below median for more than 20%
  • Directors of REIT manager's shareholding: Above median for more than 20%

Lease Profile

  • Occupancy: ± 5% from median
  • WALE: Above median for more than 20%
  • Highest lease expiry within 5 years: Below median for more than 20%; Falls in 2024
  • Weighted average land lease expiry: Above median for more than 20%

Debt Profile

  • Gearing ratio: Above median for more than 10%
  • Cost of debt: Above median for more than 10%
  • Fixed rate debt %: Above median for more than 10%
  • Unsecured debt %: 0%
  • WADM: Below median for more than 20%
  • Highest debt maturity within 5 years: Above median for more than 20%; Falls in 2024
  • Interest coverage ratio: ± 10% from median

Diversification Profile

  • Top geographical contribution: Below median for more than 20%
  • Top property contribution: Below median for more than 20%
  • Top 5 properties' contribution: Below median for more than 20%
  • Top tenant contribution: ± 10% from median
  • Top 10 tenants' contribution: Above median for more than 20%

Key Financial Metrics

  • Property yield: Above median for more than 20%
  • Management fees over distribution: Below median for more than 20%; $10 distribution for every dollar paid 
  • Distribution on capital: Above median for more than 20%
  • Distribution margin: ± 10% from median


  • Uptrend: Distribution Margin
  • Flat: DPU, NAV per Unit, Occupancy, Property Yield
  • Slight Downtrend: Interest Coverage Ratio
  • Downtrend: Distribution on Capital

Relative Valuation

  • Current 52 Weeks Range: 13.6%
  • P/NAV: Below -2SD for 1y & 3y
  • Dividend Yield: Above +2SD for 1y & 3y

Author's Opinion

 Favorable Less Favorable
Diversified SectorLow REIT Sponsor's Shareholding
High Directors of REIT Manager's ShareholdingLow REIT Manager's Shareholding
Long WALEHigh Gearing Ratio
Well Spread Lease ExpiryHigh Cost of Debt
Long Weighted Average Land Lease Expiry0% Unsecured Debt
High Fixed Rate Debt %Short WADM
Low Top Geographical ContributionConcentrated Debt Maturity
Low Top Property & Top 5 Properties ContributionsHigh Top 10 Tenants Contribution
High Property YieldDistribution on Capital Downtrend
Competitive Management Fees 
High Distribution on Capital 
Distribution Margin Uptrend

Performance has improved as compared to the previous quarter due to the acquisition of Upland Square. With the new acquisition, tenant diversification is improved where the top and top 10 tenants' weightage dropped from 12 to 10.8% and from 66.1% to 56.2% respectively. 4Q should be a better quarter due to the full quarter contribution from Upland Square.

You could also refer below for more information:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and Detail of Singapore REIT

REIT Analysis - List of previous REIT analysis posts

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Singapore REITs Post Telegram Channel - Join to receive posts for Singapore REITs

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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 due to 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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