United Hampshire US REIT Enters Connecticut with Yield-Accretive Acquisition of Wallingford Fair Shopping Center

Key Points of the Acquisition

• UHREIT announces entry into Connecticut with completion of the acquisition of Wallingford Fair Shopping Center, marking its presence in a densely populated and affluent state in the U.S.
• Yield-accretive acquisition: The property is expected to enhance portfolio yield and drive a 2.0% increase in Distribution Per Unit (DPU), rising to 4.11 US cents on a pro forma FY2024 basis.
• Purchase price: The acquisition was completed at approximately US\$21.4 million, representing an 8.2% discount to the independent valuation of US\$23.3 million.
• Property details: Wallingford Fair is a freehold, grocery-anchored retail property with a net lettable area of 115,223 square feet, located in Wallingford, Connecticut, a prime commercial corridor near New Haven.
• Strong tenancy profile: ShopRite, a leading supermarket chain operating in six U.S. states, is the anchor tenant and has been present since 2010. The property boasts 100% committed occupancy and a long Weighted Average Lease Expiry (WALE) of 12.8 years.
• Portfolio impact: Post-acquisition, UHREIT’s portfolio expands to 23 properties across nine Eastern seaboard states, maintaining stable committed occupancy at 97.2% and WALE at 7.6 years.
• Funding and capital recycling: The acquisition was partially funded by proceeds from the divestment of Albany Supermarket (completed in Q1 2025), demonstrating effective capital recycling into higher-yielding assets.
• Recent acquisition strategy: Follows the acquisition of Dover Marketplace in Pennsylvania (completed in August 2025 at a 4.8% discount to valuation), which has already contributed positively to financial performance.

Important Shareholder Information and Potential Price-Sensitive Elements

• Yield Accretion: The acquisition is explicitly stated to be yield-accretive, with a forecasted 2% uplift in DPU. This is a key metric for REIT investors and may positively impact share valuation.
• Discount to Valuation: Purchasing the property at a significant discount (8.2%) below valuation implies immediate value creation and prudent capital deployment, likely favorable to investors.
• Long-term Income Stability: The property’s WALE of 12.8 years with a blue-chip anchor tenant in ShopRite ensures steady rental income, improving portfolio income resilience and reducing vacancy risk.
• Effective Capital Recycling: The use of divestment proceeds to fund new acquisitions demonstrates UHREIT’s proactive asset management and commitment to optimizing portfolio returns.
• Geographical Expansion: Entry into Connecticut diversifies the portfolio into a region with strong demographics and purchasing power, potentially reducing concentration risk and enhancing growth prospects.
• Portfolio Growth and Diversification: With 23 properties across nine states and an aggregate NLA of approximately 3.6 million square feet, UHREIT enhances its scale and geographic diversification.
• Sponsor Strength: Backing from UOB Global Capital LLC and The Hampshire Companies, LLC, with combined regulatory and non-regulatory AUM of US\$3.4 billion, provides institutional support and operational expertise.
• Recent Transaction History: Consistent track record of acquiring grocery-anchored assets at discounts to valuations, reinforcing management’s ability to execute accretive deals.

Detailed Analysis for Investors

United Hampshire US REIT (“UHREIT”) has announced the strategic acquisition of Wallingford Fair Shopping Center in Connecticut, marking its first foray into this affluent and densely populated state. The acquisition, completed at US\$21.4 million (an 8.2% discount to valuation), will be partially funded by proceeds from the earlier divestment of Albany Supermarket, highlighting UHREIT’s disciplined capital recycling strategy.

Wallingford Fair is a freehold, grocery-anchored property spanning 115,223 square feet with 100% occupancy and a robust WALE of 12.8 years. ShopRite, a reputable supermarket chain, anchors the property, ensuring long-term rental stability. UHREIT’s portfolio now comprises 23 properties across nine states along the U.S. Eastern seaboard, maintaining a committed occupancy of 97.2% and WALE of 7.6 years.

The acquisition follows the successful purchase of Dover Marketplace in Pennsylvania, which was completed at a 4.8% discount to valuation and has already contributed positively to the REIT’s financial performance. The proactive divestment of lower-yielding assets, such as Albany Supermarket, and reinvestment into higher-yielding, stable assets is a clear indication of management’s focus on income resilience and portfolio optimization.

Investors should note that the management projects a 2% uplift in DPU to 4.11 US cents on a pro forma FY2024 basis, a material improvement for unitholders. The entry into Connecticut, with its strong regional connectivity and favorable demographics, could also provide future upside through rental growth and capital appreciation.

UHREIT enjoys strong sponsor support from UOB Global Capital LLC and The Hampshire Companies, LLC, both with significant experience and AUM in U.S. real estate markets. The REIT’s focus on grocery-anchored and necessity-based retail properties, which are resilient to e-commerce disruption, provides a defensive profile attractive to income-focused investors.

In conclusion, this acquisition is a potentially price-moving event for UHREIT, given the immediate yield accretion, discount to valuation, strengthened portfolio resilience, and strategic geographic expansion.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors should conduct their own research and consider their own investment objectives and risk tolerance before making any investment decisions. Past performance is not indicative of future results. The information herein is based on publicly available sources and may be subject to change without notice.

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