United Hampshire US REIT 3Q 2025 Results: Robust Growth, Resilient Portfolio, and Positive Outlook

Key Financial Highlights

• Distributable Income: Surged 15.5% year-on-year (y-o-y) in 3Q 2025, with a 6.6% y-o-y increase for the nine months ended 30 September 2025.
• Gross Revenue and Net Property Income: For 3Q 2025, gross revenue rose 1.4% y-o-y and net property income increased 5.7% y-o-y. However, for the 9M 2025 period, gross revenue and NPI both dipped slightly (down 1.6% and 1.9% y-o-y respectively) due to the absence of contributions from three divested properties.
• Same-Store Performance: Excluding the impact of divestments, same-store gross revenue and NPI grew by 3.1% and 5.0% y-o-y respectively.
• Acquisition Impact: The addition of Dover Marketplace in Pennsylvania (acquired August 2025) contributed positively to financials.
• Finance Costs: Lower interest rates and reduced borrowings following partial loan repayments (from divestment proceeds) helped boost distributable income.

Operational Strengths

• Portfolio Resilience: Grocery & Necessity Properties maintained a high committed occupancy rate of 97%, with a long WALE (Weighted Average Lease Expiry) of 7.5 years and robust tenant retention of 90%.
• Lease Expiry Profile: Minimal near-term leasing risk, with only 0.3% of leases expiring in 2025 and 3.2% in 2026.
• Self-Storage Properties: High occupancy rates at Carteret (93.4%) and Millburn (96.4%) Self-Storage properties, with strong net rental rates.
• Capital Management: Net aggregate leverage at 37.8%, providing significant headroom for growth and acquisitions. 78.5% of loans are either fixed rate or hedged, with a weighted average interest rate of 5.06% (trending downward). No refinancing required until November 2026. Interest coverage ratio stands at 2.6x; weighted average debt maturity is 1.6 years.

Market Outlook and Portfolio Strategy

• US Economic Backdrop: US GDP growth at 3.8% in 2Q 2025; inflation has fallen to 3.0% (from 9.1% in June 2022).
• Interest Rates: US Federal Reserve cut rates twice (in September and October), lowering rates to 3.75%-4%, the lowest in three years, which is supportive of consumption and investment.
• Retail Strip Centers: Grocery-anchored strip centers remain in strong demand, with strip center foot traffic up 2% y-o-y in 2Q 2025. Occupancy rates remain high at 95%+ and are projected to improve further.
• Self-Storage Sector: Resilient performance supported by facility undersupply in the New York Metropolitan Area.
• Strategic Approach: The manager remains proactive, focusing on strengthening income streams and the balance sheet through asset enhancement, development initiatives, accretive acquisitions, and opportunistic divestments.

Portfolio Composition and Sponsors

• Property Portfolio: 20 predominantly freehold Grocery & Necessity Properties and two Self-Storage Properties, primarily on the US East Coast. Total appraised value: ~US\$751 million; NLA: ~3.6 million sq ft.
• Tenant Mix: Focus on tenants resilient to e-commerce, including supermarkets, restaurants, home improvement stores, fitness centers, and warehouse clubs with strong omni-channel platforms.
• Sponsors: UOB Global Capital LLC (AUM: US\$4.1 billion) and The Hampshire Companies, LLC (AUM: US\$2.6 billion; manages 170 properties totalling 14 million sq ft across the US).

Potential Price-Sensitive Information

• Strong 3Q 2025 distributable income growth (15.5% y-o-y) and healthy operational metrics may positively influence investor sentiment and share price.
• Recent acquisition (Dover Marketplace) and high occupancy levels signal portfolio expansion and resilience.
• Low leverage and downward-trending interest rates improve financial flexibility and future growth prospects.
• Minimal lease expiries and strong tenant retention reduce near-term risk and support cash flow stability.
• Sector tailwinds in grocery-anchored retail and self-storage could drive future rental growth and valuation uplift.

Investor Considerations

• UHREIT demonstrates a resilient and well-managed portfolio, with strong fundamentals, prudent capital management, and an active approach to asset enhancement and acquisitions.
• The combination of operational strength, sector tailwinds, and supportive macroeconomic factors may underpin future share price growth.
• Investors should monitor any future acquisitions, divestments, and interest rate trends, as these will impact distributable income and portfolio valuation.
• There remain inherent risks, including macroeconomic changes, potential tenant defaults, and shifts in sector demand, which could affect performance.

Contact Information for Further Queries

United Hampshire US REIT Management Pte. Ltd.
Wong Siew Lu, CFA, CA (Singapore)
Head of Investor Relations and Sustainability
T +65 6797 9010 (Office Hours)
E [email protected]

CDR
Chia Hui Kheng / Jaslin Tan / Darienne Sim
T +65 6534 5122 (Office Hours)
E [email protected]

Disclaimer

This article is for informational purposes only and does not constitute investment advice, an offer, or solicitation to buy or sell any securities. The information is based on public disclosures and may include forward-looking statements subject to risks and uncertainties. Actual results may differ materially. Investors should conduct their own research and consult their financial advisors before making any investment decisions. Past performance is not indicative of future results.

View UtdHampshReitUSD Historical chart here