In the REIT’s results, Koh adds that rents for self-storage properties are also on an upward trajectory. Occupancies at UHREIT’s self-storage properties Carteret and Millburn were 92.4% and 93.9% respectively as of December 2022. The average net rent rate for Carteret and Millburn increased 29% and 31% y-o-y respectively to US$24.30 and US$26.60 per sqft in 4QFY2022.
UOB Kay Hian Research analyst Jonathan Koh has maintained his “buy” recommendation for United Hampshire US REIT (UHREIT) (SGX:ODBU
) with a higher target price of 71 US cents (96.13 cents) from 68 US cents previously. His new target price is based on the dividend discount model (DDM) which features an 8.5% cost of equity (COE) and a terminal growth rate of 1.5%.
To Koh, UHREIT’s distribution per unit (DPU) of 2.97 US cents for the 2HFY2022 ended Dec 31, 2022, stood “slightly” above his expectations despite its 2.6% decline y-o-y. The REIT’s higher gross revenue and net property income (NPI) in the 4QFY2022, driven by its third and largest acquisition of Upland Square, which was completed in July 2022, also shows that the REIT is still continuing to grow via acquisitions, he adds.
