Broker: UOB Kay Hian
Date of Report: 15 May 2026
Excerpt from UOB Kay Hian report.
Report Summary
- Stock: United Hampshire US REIT (UHU SP)
- Action: BUY (Maintained)
- Target Price: US\$0.72
- Current Price: US\$0.52
- Upside: +38.5%
- Key Highlights:
- UHU reported distributable income of US\$6.9m for 1Q26 (+10% yoy), in line with expectations.
- Net Property Income (NPI) grew 12.7% yoy, driven by higher rents, rental escalation, new leases, and contributions from recent acquisitions (Dover Marketplace, Wallingford Fair).
- NPI margin improved to 67% due to higher portfolio occupancy and new leases.
- Portfolio WALE lengthened from 7.7 to 8.0 years, with major grocery tenants (Giant, Stop & Shop) renewing leases for over 10 years.
- 2026 distribution yield is an attractive 9.4%, significantly higher than comparable peers (Kimco Realty: 4.5%, Regency Centers: 3.9%).
- Acquisition of Wallingford Fair is yield-accretive and expected to boost DPU by 2.0%.
- UHU’s resilient business model is anchored by necessity and grocery retail, with high occupancy (97.7%) and 59% of base rental income from essential services.
- Cost of debt is trending lower (4.91%), and no refinancing needed until Feb 2028.
- Investment Implication: UHU is focused on sustainable growth via accretive acquisitions, asset enhancement, and asset recycling. The trust offers an attractive yield spread and resilient earnings profile, making it compelling for yield-seeking investors. Maintain BUY with a target price of US\$0.72.
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