π― Is United Hampshire US REIT (SGX: ODBU) worth checking out?
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π¦ 1Q 2025 Snapshot
Gross revenue was US$18.1M, and distributable income came in at US$6.3M, down just 1.4% YoY. This decline was largely due to divestments. On a like-for-like basis (excluding divested assets), gross revenue actually rose 3.2% YoY - driven by new leases with Trader Joeβs and Dickβs Sporting Goods, plus rental escalations. $UtdHampshReitUSD(ODBU.SI)$
π¬ Divesting Non-Core Assets
The REIT sold off its Loweβs, Samβs Club, and Albany Supermarket properties over the past year. These were lower-yielding assets. The proceeds helped reduce gearing and created room for future acquisitions aligned with the REITβs focus on grocery-anchored, necessity-based retail.
π Portfolio Strength
Grocery & Necessity properties boast a high committed occupancy of 97.2%, while Self-Storage sits at 93.6%. The WALE stands at a solid 7.8 years, and tenant retention is high at 89%. Only 1.8% of leases are due in 2025 - offering exceptional income visibility.
π° Distributions & Leverage
Net aggregate leverage improved to ~37% post-divestments, and no refinancing is required until November 2026. About 73.6% of loans are on fixed or hedged rates, with the average interest rate at 5.21%. The REIT remains well-positioned to maintain stable distributions.
π Attractive Valuation Metrics
At current prices, United Hampshire US REIT offers a trailing distribution yield of approximately 8.7% - among the highest in the Singapore REIT space. It also trades at a deep discount to NAV, with units priced at around 0.6x Price/NAV. For investors seeking high yield with strong downside protection, thatβs a compelling combination.
π Conclusion
With a focus on resilient tenants like supermarkets, fitness chains, and pharmacies, United Hampshire US REIT offers defensive income, long lease tenures, and a smart capital recycling strategy.
In a volatile macro backdrop, this REIT is quietly executing on fundamentals - and worth a closer look from any income-focused investor.
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