SINGAPORE (July 7): The manager of United Hampshire US REIT announced on Tuesday that it has achieved over 80% of retail tenant base rent collection for the month of June 2020.
Retail tenants, which comprised some 91% of the total base rental income resumed business operations in June 2020, following the easing of lockdown measures across the US.
As at June 30, some 70% of the tenants that were previously closed in April 2020, have reopened for business.
As at July 2, Covid-19 transmission cases were on the decline in the states of New York, New Jersey, Maryland, and Massachusetts, where 19 of the REIT’s 22 properties are located.
This represents around 81% of the REIT’s IPO value by appraised value. The appraised value of the IPO portfolio, excluding the top-ups, is an approximate US$592.7 million ($825.1 million).
The REIT’s three properties remain open in Florida and North Carolina, despite the increasing number of Covid-19 cases.
According to the manager, the situation is being monitored closely in these states, and its tenants remain open for business.
On the back of re-commencing business operations, advance estimates of US retail and food services sales surged 17.7% month-on-month in May 2020.
The manager says the REIT has received rental relief requests from some of its tenants, and that it will continue to assess these requests on a case-by-case basis. It says the full financial impact of the rental relief will be made known in its 1H20 results announcement.
As part of the rental relief discussions, the manager of the REIT is also in talks with certain retail tenants on potential lease extensions which would be accretive to the overall weighted average lease expiry (WALE).
The REIT has commenced construction of the St. Lucie West Expansion on May 12. The expansion remains on track to be completed by 1Q2021, and it will be occupied by the existing anchor tenant of St. Lucie West, Publix Super Markets.
The REIT’s self-storage properties have also experienced a steady increase in leasing activity for the month of June on the back of the gradual resumption of economy activity.
As at 29 June 2020, Millburn Self-Storage and Carteret Self-Storage have achieved occupancy levels of approximately 65% and 94%, an increase from its previously-announced levels of 60% and 91% respectively.
Units in United Hampshire US REIT closed flat at 59 US cents on Monday.
