UNITED Hampshire US Real Estate Investment Trust’s (Reit) distribution per unit (DPU) for the half year ended Dec 31, 2024, fell to US$0.0205, down 4.2 per cent from US$0.0214 over the same period a year earlier.
Revenue rose 0.4 per cent to US$36.4 million for the half-year, from US$36.2 million in the year-ago period.
This increase in revenue was due to new leases and rental escalations from existing leases, the Reit’s manager said on Wednesday (Feb 19).
It added that income from the investment trust’s new Academy Sports + Outdoors store at St Lucie West, a property in Florida, also contributed to the rise in revenue.
However, net property income (NPI) fell 1.6 per cent year on year to US$24.4 million in H2 FY2024.
The manager attributed this largely to the absence of contributions from divested properties, and higher property expenses that could not be recovered from tenants due to temporary lower occupancy during tenant transitions.
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Distributable income for the half year declined 6.8 per cent year on year to US$12.8 million, from US$13.7 million.
The distribution will be paid out on Mar 28, after books closure on Feb 27.
Key points
H2 FY2024
Gross revenue: US$36.4 million (+0.4%)
Net property income: US$24.4 million (-1.6%)
Distribution per unit: US$0.0205
For the full year, its distributable income fell 16.2 per cent to US$25.5 million, even as revenue grew 1.4 per cent to US$73.2 million.
The manager noted that as at Dec 31, 2024, the Reit’s portfolio valuation increased by 2.9 per cent year on year, and its net asset value per unit came in at US$0.75, from US$0.74 in the prior year.
Gerard Yuen, chief executive officer of the manager, said that the past year was a positive one for the Reit. He noted that it signed a new 10-year, 53,000-square-foot lease with Dick’s Sporting Goods at Hudson Valley Plaza in New York.
He added that the Reit’s manager has also undertaken proactive efforts to recycle capital. It strategically divested Lowe’s and Sam’s Club within Hudson Valley Plaza in August last year at a 17.5 per cent premium above purchase price, among other moves.
“These actions have helped to lower gearing, optimise portfolio performance and enhance our financial flexibility,” he said.
United Hampshire US Reit’s shares closed flat at US$0.48 on Wednesday, before the results were released.
