UHREIT Delivers Robust 3Q 2025 Results and Announces Major Strategic Milestones

Summary of Key Points

• Distributable Income Surges 15.5% YoY in 3Q 2025
• Successful Capital Recycling: Accretive Acquisitions & Profitable Divestments
• Attractive Dividend Yield of 8.3%, Trading at 32% Discount to NAV
• Debt Maturity Extended to 4.8 Years with No Refinancing Needs Until 2028
• Resilient Portfolio with High Occupancy and Essential Service Tenants
• Recognized for Corporate Governance, Sustainability, and Investor Relations

Detailed Report

Financial Performance: Strong Growth in Distributable Income

UHREIT reported a 15.5% year-on-year increase in distributable income for 3Q 2025, reaching US\$7.0 million. Despite a slight year-on-year decline in gross revenue (-1.6%) and net property income (-1.9%) for the nine months ended September 2025, these figures were impacted by the divestment of three properties in August 2024 and January 2025. Excluding these divestments, same-store gross revenue and net property income increased by 3.1% and 5.0%, respectively, driven by new leases, rental escalations, and contributions from acquisitions. Lower finance costs due to interest rate cuts and reduced borrowings further supported distributable income growth.

Portfolio Updates: Strategic Acquisitions & Profitable Divestments

UHREIT executed a series of strategic moves:

• Acquisition: Dover Marketplace, Pennsylvania, purchased for US\$16.4 million, with new development plans already pre-leased to Florida Blue.
• Divestment: Lowe’s and Sam’s Club properties within Hudson Valley Plaza sold for US\$36.5 million (17.5% above purchase price).
• Divestment: Albany-Supermarket, New York, sold for US\$23.8 million (4.2% above purchase price).
• Recent New Tenants: Dick’s Sporting Goods, Trader Joe’s, DTLR, and UMI Hotpot Sushi & Seafood Buffet commenced operations in key properties, enhancing rental income streams.

These capital recycling initiatives enabled UHREIT to invest in higher-yielding assets and optimize portfolio returns.

Capital Management: Prudent and Proactive Approach

In November 2025, UHREIT successfully refinanced and upsized its US\$250 million SOFR Term Loan and Revolving Credit Facilities to US\$350 million, doubling the revolver capacity and extending weighted average debt maturity to 4.8 years. The refinancing also introduced a US\$50 million delayed-draw tranche, providing flexibility for future acquisitions or loan refinancing. UHREIT now faces no refinancing requirements until February 2028, substantially reducing near-term financial risk.

Dividend Yield & Valuation: Attractive Returns for Investors

UHREIT offers a dividend yield of 8.3% based on the unit closing price of US\$0.50 as at 30 September 2025, significantly higher than the Singapore REIT sector average. The units are currently trading at a 32% discount to NAV (US\$0.74). Total unitholder returns were +18% in 2025, +3% in 2024, and +22.7% in 2023, underscoring strong performance.

Operational Resilience: High Occupancy, Long WALE, and Essential Tenants

• Portfolio Occupancy: 97% for Grocery & Necessity properties, 94.9% for Self-Storage.
• Long WALE: 7.5 years across portfolio, 9.6 years for top 10 tenants, and 8.1 years for essential service tenants.
• Tenant Retention Rate: 90%.
• Minimal Lease Expiry: Only 0.3% of leases expiring in 2025, reducing leasing risk.
• Diversified Tenant Mix: Leading U.S. grocers (Walmart, Publix, BJ’s Wholesale Club) report healthy sales growth; Dick’s Sporting Goods and other anchor tenants contributing to rental income stability.

Market Context: U.S. Economy and Sector Strength

• U.S. Economy: Real GDP grew at an annualized 4.3% in 3Q 2025. Inflation cooled to 2.7%, unemployment remained low at 4.4%, and the Federal Reserve cut rates by 175bps since September 2024.
• Retail Sector: Grocery-anchored strip centers demonstrate resilient foot traffic and occupancy (95.7%), outperforming other retail formats. Tight supply and retailer demand continue to support sector growth.
• Property Values: Strip Center values grew 27% and Self-Storage 34% since June 2020, while office sector values fell by 32%.

Technological and ESG Leadership

• UHREIT’s portfolio tenants, including ShopRite and Walmart, are leveraging AI-powered innovations and omnichannel strategies to enhance retail experiences, reinforcing physical store relevance and supporting rental growth.
• UHREIT received multiple awards for governance, investor relations, and sustainability, including recognition by The Edge Singapore, International Hermes Creative Awards, IR Impact Awards, and National Volunteer and Philanthropy Centre.
• UHREIT was included in the SGX Fast Track and improved its ranking in the Singapore Governance and Transparency Index, reflecting a strong compliance and governance track record.

Potential Price-Sensitive or Share Value-Relevant Information

• Significant increase in distributable income (+15.5% YoY) and attractive dividend yield (8.3%) may drive investor interest and potentially re-rate the unit price.
• Successful refinancing and extension of debt maturity to 4.8 years, with no refinancing required until February 2028, materially reduces financial risk.
• Profitable divestments (up to 17.5% above purchase price) and accretive acquisitions signal effective capital recycling and management’s ability to enhance portfolio returns.
• Units trading at a deep discount to NAV (32%) presents a value opportunity for investors.
• Consistent high occupancy, minimal lease expiries, and high tenant retention rates provide downside protection and support stable cash flows.
• Recognition for governance and inclusion in key indices may enhance institutional investor confidence and increase liquidity.

Conclusion

UHREIT’s latest results and strategic updates highlight a well-managed, resilient REIT with strong financial metrics, proactive capital management, and a portfolio anchored by essential retail assets and high-quality tenants. The combination of attractive yield, discounted valuation, and operational stability is likely to be closely watched by investors and could potentially drive positive share price momentum.

Disclaimer

This article is for informational and educational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Readers should conduct their own due diligence and consult with professional advisers before making investment decisions. The information herein is based on publicly available sources and the UHREIT report dated 14 January 2026. No responsibility is accepted for any errors or omissions.

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