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United Hampshire US REIT offers 'enticing' yield spread, UOB KH maintains 'buy'

Khairani Afifi Noordin
Khairani Afifi Noordin5/20/2022 10:19 AM GMT+08  • 2 min read
United Hampshire US REIT offers 'enticing' yield spread, UOB KH maintains 'buy'
UOB Kay Hian analyst Jonathan Koh has kept “buy” on UH REIT with a lower target price of 92 US cents.
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UOB Kay Hian analyst Jonathan Koh has kept “buy” on United Hampshire US REIT (UH REIT) with a lower target price of 92 US cents from the previous 97 US cents.

In his May 17 note, Koh says UH REIT is trading at 2022 distribution yield of 10.2%, representing an attractive yield spread of 7.3% above the 10-year US government bond yield of 2.9%. UH REIT is trading at P/NAV of 0.81x.

UH REIT benefitted from strong leasing momentum for its grocery and necessary retail properties in 1QFY2022. The occupancy for these properties improved 1.1 percentage points q-o-q to 96.4% in the quarter, the higher since its IPO, Koh highlights.

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