The manager of United Hampshire US REIT has announced distribution per unit (DPU) of 3.03 US cents (4 cents) for the 2HFY2020 ended December, outperforming DPU forecast of 2.99 US cents by 1.3%.

Distributable income for the 2HFY2020 stood 2.0% higher than IPO forecast at US$15 million.

Distributable income for the period from the REIT’s listing date of March 12, 2020, to Dec 31, 2020 (or FP2020), was 1.3% above forecast at US$23.8 million.

DPU for the period was 4.81 US cents, 1.1% higher than forecast.

SEE:UOB Kay Hian initiates United Hampshire US REIT at 'buy' with TP of 92 US cents

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2HFY2020 gross revenue stood 1.5% lower than forecast at US$26.3 million, while net property income (NPI) came in 2.1% lower than forecast at US$19.8 million.

In FP2020, United Hampshire REIT reported gross revenue of US$41.6 million, 2.2% lower than forecast. Property expenses stood 5% lower than forecast at US$11.8 million. Accordingly, net property income (NPI) stood 3.3% lower than its IPO forecast at US$31.1 million.

The lower-than-forecasted figures were due to the US$0.6 million in rent reliefs granted to assist tenants, a provision of US$0.3 million for doubtful debt and an initial deceleration in leasing activities of the Self-Storage Properties during the onset of Covid-19.

For the 4QFY2020 ended December, rental collections for the REIT’s Grocery and Necessity Properties stood at 98.9%.

Grocery and Necessity Properties have maintained an occupancy rate of 94.7% and long weighted average lease expiry (WALE) of 8.2 years as at end-December.

“We are pleased to have achieved a steady set of financial results, which outperformed our IPO forecast, notwithstanding the challenging business environment in 2020. This further underscores the resilience of United Hampshire REIT’s portfolio of 18

suburban Grocery & Necessity Properties and four Self-Storage Properties,” says Robert Schmitt, CEO of the manager.

“The key differentiating factor of our portfolio is that United Hampshire REIT’s Grocery & Necessity Properties, which comprise 95% of gross revenue, cater to daily necessities, unlike enclosed shopping malls, and our properties are strategically located in high density suburban markets across the populous and affluent East Coast of the US. Together with the Self-Storage Properties, which are also classified as commercial business addressing the needs of the US consumers, our properties have remained open throughout the pandemic,” he adds.

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In 2020, the manager secured 25 new and extended retail leases spanning about 319,000 sqf.

Looking ahead, the manager believes the REIT’s “resilient portfolio” remains “well-positioned” to weather the challenges ahead and will continue to look for “suitable accretive acquisition opportunities”.

Units in United Hampshire REIT closed 0.5 cent higher or 0.8% up at 66 cents on Feb 26.