United Hampshire US REIT has reported distributable income of US$16.8 million for 2HFY2022, up 5.2% over the preceding year ended Dec 31 2021.
For the full year, distributable income was up 6.2% to $33.1 million. Gross revenue for FY2022 was US$67.5 million, up 22.2% over FY2021.
The REIT, which owns a portfolio of malls and self-storage spaces, has reported a distribution per unit of 2.97 US cents for 2HFY2022, down 2.6% y-o-y. This brings UHREIT’s full year payout to 5.88 US cents, down 3.6%.
After taking into account a newly acquired property, UHREIT’s portfolio was valued at US$738.7 million as at Dec 31 2022, up 7.3% from Dec 31 2021.
“We have delivered strong performance underscored by our resilient portfolio,” says Robert Schmitt, CEO of UHREIT’s manager. “Income robustness was further boosted by proactive asset management and our third and largest DPU accretive acquisition of Upland Square.”
On the other hand, the “opportunistic” divestment of the two Self-Storage Properties, Elizabeth and Perth Amboy at a price above book value, coupled with the acquisition of Upland Square, illustrates
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UHREIT’s ability to actively recycle capital into higher yielding assets, says Schmitt.
In Dec 2022, UHREIT refinanced its earlier term loan credit facilities maturing in 2023 and 2024. By doing so, UHREIT has almost doubled its weighted average debt maturity to 4 years from 2.1 years as at Sept 30 2022.
As such, UHREIT has no significant refinancing requirement until Nov 2026. Its aggregate leverage is 41.8%, within the 50% regulatory limit.
As at Dec 31 2022, 81.4% of UHREIT’s total loans are either fixed rate loans or floating rate loans that have been hedged using interest rate swaps.
“Against a backdrop of broader macro uncertainties caused by a high inflation rate and rising interest rates, the manager will continue to focus on portfolio optimisation and asset enhancement to strengthen UHREIT’s income streams.
“The manager will selectively look for suitable investment opportunities that will provide unitholders with long-term accretive value,” says UHREIT.
UHREIT closed Feb 22 at 51 US cents, up 1%.
