Gross revenue fell 3.5% below its forecast at US$15.3 million, while property expenses for the period stood at US$4.5 million.
The lower gross revenue was largely due to lower reimbursable expense recoveries pertaining to Grocery & Necessity Properties.
In addition, there was a drop in leasing activities for SelfStorage Properties at the onset of the pandemic due to shelter-in-place guidelines, and a delay in completion of Perth Amboy Self-Storage.
Accordingly, net property income (NPI) fell 5.5% below forecast at US$11.3 million, mainly due to the lower gross revenue and other operating income. The lower NPI was also due to a provision of US$0.3 million for rent relief currently under negotiation, and partially offset by lower repair and maintenance expenses.
As at June 30, the REIT has an occupancy rate of 95%, with a weighted average lease expiry (WALE) of 8.4 years. Excluding forward committed leases, the REIT’s WALE is 8.1 years.
Cash and cash equivalents as at June 30 stood at US$11.8 million.
Units in United Hampshire US REIT closed 1 cent higher, or 1.9% up, at 54 US cents on Aug 12 prior to the results announcement.
