At the same time, with all of UHREIT’s leases being on triple-net basis, Goh believes that this lease structure will limit operational risks to carpark and common area maintenance. “Most leases include built-in rental escalations of 1%–3% per annum for inline tenants and 5–10% every five years for anchor tenants, providing embedded income growth,” says Goh.
Beansprout analyst Goh Lay Peng has initiated a “buy” call on United Hampshire US REIT (UHREIT) as she sees the REIT generating defensive yield from America’s everyday essentials.
UHREIT owns a portfolio of 20 grocery & necessity and two self-storage properties, with a total appraised value of US$774.3 million ($1 billion) and aggregate net lettable area (NLA) of 3.6 million square feet. “The supply-demand imbalance continues to support rental growth and strengthens the income resilience of well-located strip centres,” Goh states in her June 30 initiation report.
