United Hampshire US REIT has reported 3QFY2025 revenue of US$18.1 million, up just 1.4% y-o-y. Yet, net property income was up 5.7% y-o-y to US$12.7 million and distributable income of US$7 million, an increase of 15.5% y-o-y, thanks to lower financing costs.
This brings its 9MFY2025 revenue to US$53.8 million, down 1.6% y-o-y and net property income down 1.9% y-o-y to US$36.7 million due to the absence of contributions from three properties that had been sold.
Excluding the effect of the divestments, on a same-store basis, 9MFY2025 gross revenue and NPI increased by 3.1% and 5.0% y-o-y, respectively, driven by the commencement of new leases and rental escalations from existing leases.
Gerard Yuen, CEO of the manager, says the REIT has delivered another strong performance this quarter, driven by the commencement of new leases, built-in rental escalations from existing leases and lower interest costs.
"We continue to see sustained leasing momentum as strong retail demand meets limited new supply of grocery-anchored centres," says Yuen.
"In particular, our recent acquisition of Dover Marketplace, a strategically located property anchored by a leading grocery tenant, has contributed positively to our financial performance," he adds.
See also: ASL Marine reports earnings of $20.4 mil for 1QFY2026 up 13.3% y-o-y
As at Sept 30, committed occupancy for the REIT's grocery & necessity properties remained high at 97% with a long WALE of 7.5 years and tenant retention rate of 90%.
Its lease expiry profile is well-distributed with only 0.3% of leases expiring by end of this year and 3.2% next year.
Its two self-storage properties, as at Sept 30, maintained occupancy levels of 93.4% and 96.4%.
The REIT says it has a well-spread debt maturity profile with no refinancing requirement until next November.
As at Sept 30, its net aggregate leverage stands at 37.8%, with 78.5% of total loans being either fixed rate loans or floating rate loans that have been hedged to fixed rates.
Weighted average debt maturity stood at 1.6 years, and interest coverage ratio was 2.6 times.
United Hampshire US REIT units closed at 50 cents on Nov 13, up 1.01% for the day and up 4.17% year to date.
