UHREIT Delivers Strong 3Q 2025 Performance: Financial Growth, Strategic Divestments, and Portfolio Resilience

UHREIT (United Hampshire US REIT) has released its 3Q 2025 report, providing investors with a comprehensive update on its financial performance, portfolio developments, and macroeconomic context. The latest results highlight resilient operational metrics, successful capital recycling, and an attractive dividend yield, positioning UHREIT as a compelling investment in the current REIT landscape.

Key Financial Highlights

• Distributable Income Growth: UHREIT’s distributable income surged by 15.5% year-on-year to US\$7.0 million in 3Q 2025, driven by reduced finance costs following lower interest rates and borrowings after key divestments.
• Stable Gross Revenue & Net Property Income: Gross revenue rose 1.4% year-on-year to US\$18.1 million, and net property income increased 5.7% to US\$12.7 million. The slight decline in 9M 2025 results compared to 9M 2024 was due to the absence of contributions from divested properties, but same-store metrics were robust (gross revenue up 3.1%, net property income up 5.0%).
• Attractive Yield & Valuation: UHREIT offers a high dividend yield of 8.3%, trading at a 32% discount to NAV (US\$0.74 NAV vs. US\$0.50 market price). The REIT’s price-to-book ratio stands at 0.68, with a YTD total return of 14.6%.
• Prudent Capital Management: Aggregate leverage remains conservative at 38.9% (net 37.8%), with no refinancing requirements until November 2026. The weighted average interest rate is 5.06% and the weighted average debt maturity is 1.6 years. Sensitivity to SOFR is well managed, with no swaps maturing until December 2026.

Strategic Divestments and Capital Recycling

• Divestments Above Purchase Price: UHREIT divested the Lowe’s and Sam’s Club properties within Hudson Valley Plaza for US\$36.5 million (17.5% above purchase price) and Albany Supermarket for US\$23.8 million (4.2% above purchase price). These actions demonstrate effective capital recycling and value realization for shareholders.
• Acquisition of Higher Yielding Assets: Proceeds from divestments have been deployed into new acquisitions, such as Dover Marketplace (US\$16.4 million), enhancing portfolio yield and growth prospects.
• New Development and Tenant Additions: A new 5,000 sq ft store pre-leased to Florida Blue is under construction, further diversifying tenant mix. Recent tenant additions include Dick’s Sporting Goods, Trader Joe’s, DTLR, and UMI Hotpot Sushi & Seafood Buffet, all commencing operations in newly acquired or enhanced properties.

Portfolio Resilience and Growth

• High Occupancy and Long WALE: Committed occupancy for grocery & necessity properties remains robust at 97%, with self-storage at 94.9%. The portfolio features a long Weighted Average Lease Expiry (WALE) of 7.5 years, with minimal lease expiries (only 0.3% in 2025).
• Diversified Tenant Base: Leading tenants include Walmart, Publix, BJ’s Wholesale Club, and Dick’s Sporting Goods, with healthy sales growth in 2025. For example, Walmart reported a 4.6% y-o-y increase in comparable sales, Publix 3.4%, and BJ’s 2.3%. These tenants contribute significantly to rental income and support portfolio stability.
• Resilient Self-Storage Performance: Carteret and Millburn Self-Storage properties maintain high occupancy rates of 93.4% and 96.4%, respectively, with rental rates remaining well-positioned.
• Technological and Omnichannel Innovations: UHREIT’s tenants are embracing technology and omnichannel strategies. ShopRite has introduced AI-powered smart carts, while Walmart is partnering with OpenAI to enable ChatGPT shopping experiences, positioning the portfolio for future retail trends.

Macroeconomic Context and Sector Trends

• U.S. Economy Rebounding: Real GDP growth hit an annualized rate of 3.8% in Q2 2025, while inflation cooled to 3.0%. The unemployment rate remains low at 4.3%, and the Federal Reserve has implemented 150bps in rate cuts since September 2024, contributing to lower financing costs for UHREIT.
• Retail Sector Strength: U.S. retail sales grew 5.0% y-o-y in August, with grocery sales up 3.4%. Strip centers continue to outperform, with foot traffic up 2% y-o-y and occupancy rates in the 95% range. Property values for strip centers and self-storage have increased by 27% and 34%, respectively, since June 2020, while office property values have declined by 32%.

Investment Merits and Recognition

• Reputable Sponsors: Backed by UOB Global Capital and The Hampshire Companies LLC, with a combined track record of over 80 years and US\$7.5 billion in AUM.
• Consistent Growth: AUM has grown 28.5% since IPO in 2020, reaching US\$751 million with 20 grocery & necessity and 2 self-storage properties across 8 U.S. states.
• Awards and Accolades: UHREIT has received multiple awards in 2024 and 2025, including The Edge Singapore’s Centurion Club Award, Gold Winner at the Hermes Creative Awards, and inclusion in the SGX Fast Track and major indices. Governance standards remain high, ranking 12th in the Singapore Governance and Transparency Index.

Important Considerations for Shareholders

• Potential Price Sensitivity: Investors should note the strong financial performance and above-purchase price divestments, which signal management’s ability to unlock value and may support share price appreciation.
• Attractive Yield and Valuation: The combination of high dividend yield, substantial NAV discount, and healthy tenant/occupancy metrics could attract new investors and drive price momentum.
• Capital Management and Rate Sensitivity: UHREIT’s active refinancing and hedging strategies mean it is well positioned in a lower-rate environment, but rate movements (SOFR) will continue to impact distributable income.
• Tax Efficiency: The trust structure ensures no U.S. or Singapore withholding tax applies to unitholder distributions, increasing net returns and global investor appeal.

Conclusion

UHREIT’s 3Q 2025 update presents a compelling case for investors, with strong distributable income growth, strategic capital recycling, high occupancy, and robust tenant sales. The REIT’s attractive dividend yield and deep discount to NAV, coupled with prudent capital management and technological adaptation, position it well for continued resilience and growth. These factors may be price sensitive and could influence UHREIT’s share value positively in the quarters ahead.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell securities. Investors should conduct their own research or consult with a qualified financial advisor before making investment decisions. Past performance is not indicative of future results. The value of investments may go down as well as up.

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