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

Published:
UNITED HAMPSHIRE US REIT (SGX:ODBU) | SGinvestors.ioUNITED HAMPSHIRE US REIT (SGX:ODBU)
  • 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 -
  • - Read this at SGinvestors.io -
  • 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 an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ 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:
2025-01-15 United Hampshire US REIT - Grocery-anchored Strip Centres Gaining Prominence As A Distinct Asset Class.

Previous report by UOB:
2024-08-16 United Hampshire US REIT - New Leases Provide Higher Occupancy & Rental Uplift In 1H24.

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 Dividend Payout Dates & Corporate Actions,
United Hampshire US REIT News






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