UHREIT Delivers Strong 3Q 2025 Financial Performance, Announces Strategic Capital Moves

Key Highlights from UHREIT’s 3Q 2025 Results

• Distributable Income Up 15.5% Year-on-Year: UHREIT reported a significant 15.5% YoY growth in 3Q 2025 distributable income, rising to US\$7.0 million from US\$6.0 million in 3Q 2024. This growth was achieved despite a slight dip in gross revenue (-1.6%) and net property income (-1.9%) due to recent divestments. On a same-store basis (excluding divested assets), gross revenue and net property income increased by 3.1% and 5.0% respectively, driven by new leases and rental escalations, as well as the contribution from the recently acquired Dover Marketplace in August 2025.
• Prudent Capital Management and Successful Refinancing: UHREIT successfully upsized and extended its US\$250 million SOFR Term Loan and Revolving Credit Facilities to US\$350 million in November 2025, effectively doubling revolver capacity and extending the weighted average debt maturity from 1.6 years to 4.8 years. There are no refinancing requirements until February 2028. A US\$50 million delayed-draw tranche adds flexibility for acquisitions or refinancing future maturities.
• Attractive Dividend Yield and Discount to NAV: UHREIT’s units are trading at an 8.3% dividend yield and 32% discount to net asset value (NAV), based on a unit price of US\$0.50 and NAV of US\$0.74 as at 30 September 2025. Total unitholder return was +18% in 2025, building on +22.7% in 2023 and +3% in 2024.
• Capital Recycling and Portfolio Optimization: The company executed several strategic divestments:
  • Lowe’s and Sam’s Club properties within Hudson Valley Plaza were sold for US\$36.5 million, a 17.5% premium to the purchase price.
  • Albany-Supermarket was divested for US\$23.8 million, a 4.2% premium.
  • Proceeds from these divestments funded the acquisition of Dover Marketplace for US\$16.4 million and new development projects, including a pre-leased store for Florida Blue.
• Portfolio Resilience and High Occupancy:
  • UHREIT’s portfolio is anchored by necessity-based retail and self-storage properties in the populous and affluent U.S. East Coast markets. As of 30 September 2025, it comprises 20 grocery & necessity properties and 2 self-storage assets, spanning 3.6 million sq ft with US\$751 million in AUM.
  • Committed occupancy remains robust at 97% for grocery & necessity assets and 94.9% for self-storage. Lease expiries in 2025 are minimal (0.3%), reducing near-term leasing risk.
  • The weighted average lease expiry (WALE) stands at 7.5 years, with the top 10 tenants’ WALE at 9.6 years.
• Tenant Credit Quality and Essential Services: The portfolio features leading tenants including Walmart, BJ’s Wholesale Club, Publix, and Dick’s Sporting Goods. Notably, 59% of base rental income comes from tenants providing essential services, underscoring portfolio resilience.
• Sector Trends and Market Backdrop: U.S. economic growth rebounded in 3Q 2025 (GDP +4.3% annualized), with inflation cooling to 2.7% and unemployment at 4.6%. Retail sales grew 4.4% YoY in 3Q 2025, and grocery sales rose 2.7% YoY in October. Strip centers and self-storage properties have shown strong price appreciation since June 2020, up 27% and 34% respectively, while offices lagged (-32%).
• Technology and Omnichannel Integration: UHREIT’s tenants are integrating technology such as AI-powered smart carts (e.g., ShopRite) and leveraging physical stores for omnichannel fulfillment (Walmart’s partnership with OpenAI, BJ’s Wholesale, Target, Dick’s Sporting Goods), ensuring continued relevance of physical retail assets.
• Recognitions and Accolades: UHREIT was awarded multiple honors in 2024–2025, including The Edge Singapore’s Centurion Club Awards for profit growth, a Gold Winner at the Hermes Creative Awards, and high rankings for governance and investor relations. It is also included in key indices (FTSE ST Small-Cap, MSCI Singapore Micro-Cap, iEdge S-REIT, etc.) and the SGX Fast Track programme.
• Tax-Efficient Structure: UHREIT continues to operate a tax-efficient structure, and its units/distributions remain exempt from U.S. Section 1446(f) withholding tax for non-U.S. unitholders.

Potential Price-Sensitive and Shareholder-Relevant Information

• Significant Growth in Distributable Income: The 15.5% YoY increase in distributable income, achieved through new leases, escalations, and capital recycling, may positively impact UHREIT’s unit price and distribution expectations.
• Debt Refinancing and Strengthened Balance Sheet: The successful upsizing and extension of loan facilities, with no refinancing needs until 2028 and increased flexibility for acquisitions, materially reduces refinancing risk and enhances financial stability.
• Portfolio Optimization and High Dividend Yield: Continued divestments at premiums to purchase price, combined with acquisitions and new development, improve portfolio quality and may support unit price appreciation, especially given the high current yield and large discount to NAV.
• Strong Market and Sector Backdrop: The favorable U.S. economic environment, resilience of necessity-based retail, and robust tenant sales performance suggest continued stability and growth potential for UHREIT.
• Recognition and Index Inclusion: Recent accolades and index inclusions may increase institutional investor attention and drive additional demand for UHREIT units.

Conclusion

UHREIT’s 3Q 2025 results underscore its strong operational and financial performance, prudent capital management, and a resilient, future-ready portfolio. With robust distributable income growth, proactive debt refinancing, high occupancy, and attractive yield, UHREIT is well-positioned for continued value creation. The recent strategic moves, market trends, and recognitions are all potentially positive catalysts that shareholders and prospective investors should closely monitor.

Disclaimer: This article is based on publicly available materials and does not constitute investment advice. Investors are advised to conduct their own due diligence and consult professional advisors before making investment decisions. Past performance is not indicative of future results. The value of investments and income from them may go down as well as up. The information provided herein is subject to change without notice.

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