United Hampshire US REIT - UOB Kay Hian 2023-02-28: Strip Centres At The Forefront Of Retail Recovery

United Hampshire US REIT - Strip Centres At The Forefront Of Retail Recovery

  • United Hampshire US REIT provides resiliency and lucrative 2023F distribution yield of 9.6% and trades at P/NAV of 0.69x. Maintain BUY. Target price: US$0.71.
  • Strip centres are leading the recovery in retail real estate and accounted for 45% of retail absorption in 2022. United Hampshire US REIT’s strip centres are benefitting with occupancy improving 0.2ppt q-o-q to 96.9% in 4Q22. Its strip centres cater to necessity spending, and United Hampshire US REIT has a long WALE of 7.5 years.

United Hampshire US REIT's 2H22 Results

  • - Read this at SGinvestors.io -
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  • Resiliency from focus on essential services. Committed occupancy for grocery & necessity properties edged higher by 0.2ppt q-o-q to 96.9% in 4Q22. United Hampshire US REIT executed a total of seven leases (new leases: three and renewal leases: four) covering 84,464sf of retail space in 4Q22. Essential services accounted for 64.2% of base rental income as of Dec 22. United Hampshire US REIT has long weighted average lease expiry (WALE) of 7.5 years. There is minimal leasing risk with only 2.6% expiring in 2023, down from 8.7% a year ago.
  • Self-storage properties: Rents on an upward trajectory. Occupancies at self-storage properties Carteret and Millburn were 92.4% and 93.9% respectively as of Dec 22. Average net rent rate for Carteret and Millburn increased 29% and 31% y-o-y respectively to US$24.30 and US$26.60 psf in 4Q22.
  • NAV per unit stable at US$0.75. Appraised portfolio valuation increased by 1.3% y-o-y, a testament of the resiliency of United Hampshire US REIT’s grocery & necessity and self-storage properties.

Prudent capital management.

  • Read more at SGinvestors.io.

Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.

Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-02-28

Read also UOB's most recent report:
2024-05-13 United Hampshire US REIT - Longer WALE After Lease Renewals & Extensions In 1Q24 .

Previous report by UOB:
2024-03-08 United Hampshire US REIT - Hallmark Of Defensive Strength.

Price targets by other brokers at United Hampshire US REIT Target Prices.

Listing of research reports at United Hampshire US REIT Analyst Reports.

Relevant links:
United Hampshire US REIT Share Price History,
United Hampshire US REIT Announcements,
United Hampshire US REIT Dividends & Corporate Actions,
United Hampshire US REIT News Articles


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