United Hampshire US REIT - UOB Kay Hian 2023-11-10: 3Q23 Resilient & Attractive Yield From Strip Centres With Long WALE

• United Hampshire US REIT provides stability amid the current geopolitical uncertainties. Its strip centres in suburban locations have outperformed other asset classes due to entrenched hybrid work arrangements. They cater to necessity spending and have a long WALE of 7.2 years.
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• United Hampshire US REIT provides resilient and attractive 2024 distribution yield of 11.7% and trades at P/NAV of 0.56x. Maintain BUY. Target price: US$0.60.

United Hampshire US REIT's 3Q23 Results

• United Hampshire US REIT (SGX:ODBU) reported distributable income of US$7.1m for 3Q23 (- 14.5% y-o-y). The decline was caused by a change in policy as the manager has elected to receive management fees of S$0.8m fully in cash.
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Growing organically and via acquisitions.

• Gross revenue and NPI grew 8.5% and 8.7% y-o-y respectively for 3Q23, driven by its third and largest acquisition of Upland Square in Pottstown, Pennsylvania (completion: 28 Jul 22), positive rental reversion from new and renewed leases, and rental escalation from its existing properties.

Resiliency from long WALE.

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Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-11-10 SGinvestors.io

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