United Hampshire US Reit H1 DPU rises 4% to US$0.0209
Revenue for the period, however, declines 3% to US$35.7 million from US$36.9 million
[SINGAPORE] United Hampshire US Real Estate Investment Trust (Reit) announced on Wednesday (Aug 13) that its distribution per unit (DPU) for the first half ended June was US$0.0209, a 4 per cent increase from its H1 FY2024 DPU of US$0.0201.
Revenue for the period, however, declined 3 per cent to US$35.7 million from US$36.9 million in the corresponding period a year before. Net property income fell 5.6 per cent to US$24 million for H1 FY2025 from US$25.4 million in the same period a year prior.
This was mainly due to the absence of contributions from three divested properties – the Freestanding Lowe’s and Sam’s Club properties within Hudson Valley Plaza and the Albany Supermarket, which were divested in August 2024 and January 2025, respectively, said the manager of the Reit.
Distributable income increased by 2.4 per cent to US$13 million from US$12.7 million previously, largely on the back of reduced finance costs from lower interest rates and borrowings. This followed partial loan repayments made using proceeds from the aforementioned divestments.
The manager of the Reit noted that its retail sales for the period reached US$4.2 trillion, marking a 3.6 per cent year-on-year increase. This reflected continued consumer resilience amid US gross domestic product growing at a better-than-expected annualised rate of 3 per cent for the three months ended Jun 30. Additionally, inflation was relatively stable at 2.7 per cent in June.
However, economic uncertainties remain over the potential impact of the latest tariff policies, while the US unemployment rate in July is low at 4.2 per cent – though a softening in the labour market could be on the horizon.
The Reit manager aims to remain “nimble and proactive” while continuing to strengthen United Hampshire US Reit’s income streams and balance sheet through asset enhancement and development initiatives, accretive acquisitions, and divestments. This comes as foot traffic for the strip centre sector has stayed resilient in the year to date, supported by strong demand for top-tier spaces. Supply growth is expected to remain muted over the next five years, amid an evolving macroeconomic backdrop.
Units of the Reit closed up 2.1 per cent or US$0.01 at US$0.48 on Tuesday.
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