United Hampshire US REIT

[VincentWong]

Despite the Interest rate remains higher for longer, UH REIT is one of the very few, if not the only REIT got higher property value, and this is due to trends like:

• Historically low new retail development
  
• New store openings outpacing store closings
  
• Post Pandemic Lifestyle: Shift toward first ring suburbs in US
  

• The physical store is now a last-mile logistics hub for e-commerce, fulfillment & distribution
  
• Trends that shift from shopping mall to Open-Air Grocery Anchored Centers
  
• Higher trip frequency driven by necessities
  

learn more about the data at the WSJ news: Strip Malls Are the New King of Retail Real Estate

UH REIT has a portfolio of 20 grocery & necessity properties and a pair of self-storage facilities along the U.S. east coast. These grocery & necessity properties are what market insiders commonly refer to as "Big-box" - they're single-story, open-air, and boast ample parking space. it has a client list for these Big-box properties includes retail giants like Walmart and Target.

It is traded at a office-like distribution yield of 11%. which I think is very undervalued. high occupancy rate at 97.2%, properly hedge interest rate. I'm can't see why it will appreciate further. 

btw, you can meet its investor relation and its CEO in person at the REIT Symposium on 11 May. he is attending the event according to https://reitsymposium.com/speakers/.

they normally host half of S-REIT there annually. probably can ask him some questions there.

[CY09]

An interesting retail play REIT I have come across in USA. Unitedhampshire operates mainly stripe mall REITs whose tenants profile are similar to what you find at HDB heartland malls or similar to that of LINK REITs' HK profile. Basically tenants which provide grocery essentials or discount store.

In terms of property tenancy profile, the REIT has 95% freehold and 5% leasehold which expires in 15 years times. and tenancy period is 8 years which suggests tenants are in for the long run. The REIT has a high portfolio occupancy rate of 96%

Currently the REIT is a 9% dividend yielder with approx US 2 cents per bi-annual basis (at current price of 44 US cents). Leverage ratio is relatively low at 38.9%.

It seems to be an underappreciated REIT with lower gearing than many and a high dividend yield of 9%. I wonder what is the risk involved such that Mr Market is pricing it at such low levels. Given that it is in an essential business with tenancy stretching for 6 years and more out, I dont see much downside risk. Would be a good investment for dividend investors

https://links.sgx.com/FileOpen/Investor%...eID=839460