UHREIT distributable income hits US$15m

This is 2% higher than the IPO forecast.

The United Hampshire US Real Estate Investment Trust’s (UHREIT’s) distributable income rises to more than $19.9m (US$15m) for H2 2020, 2% more than IPO forecast of $19.5m (US$14.7m).

Distribution per unit (DPU) for 2H 2020 was $4.03 cents (US$3.03 cents) despite the 2H 2020 gross revenue of $34.9m (US$26.3m) was lower by 1.5% than the forecast of $35.3m (US$26.6m).

According to UHREIT’s manager United Hampshire US REIT Management Pte. Ltd., the variance was mainly due to rent relief of $798k (US$600k) granted to assist tenants in bridging through the pandemic, a provision of $399k (US$300k) for doubtful debt and an initial deceleration in leasing activities of the Self-Storage Properties at the onset of COVID-19.

“Since the gradual lifting of lockdown measures, leasing activities and occupancies for the Self-Storage Properties have trended upwards. In spite of the impact of COVID-19, UHREIT was able to achieve an FP 2020 distributable income which was higher than forecast, benefiting from lower finance costs,” the company said.

For the Q4 2020 starting 1 October 2020 to 31 December 2020, rental collections for UHREIT’s Grocery & Necessity Properties stood at 98.9%.