United Hampshire US REIT collects 77% of retail tenant base rent in May

Retail tenants comprising 87% of the total base rental income were open for business.

United Hampshire US REIT has achieved approximately 77% of retail tenant base rent income in May and 82% in April, an announcement revealed.

Retail tenants comprising 87% of the total base rental income were open for business in May, amidst the COVID-19 lockdown, as most retail tenants moved to progressively re-commence operations following the easing of lockdown measures across the United States (US).

The REIT portfolio has seen an acceleration in store re-openings as local governments have begun to gradually relax lockdown guidelines in all 50 states. As a result, approximately 50% of the retail tenants that were previously closed in April have now reopened for business in the same month.

The trust also mentioned that the economic conditions are improving as six retail tenants, which had previously requested for rent relief, have withdrawn their requests. As part of the rental relief discussions, the manager is also in talks with certain retail tenants on potential lease extensions which would be accretive to the overall WALE.

Notably, for St. Lucie West in Florida, 19 of the original 22 retail tenants that closed for business in April have since re-opened. Site work in connection with the construction of the St. Lucie
West Expansion has commenced on 12 May and remains on track to be completed by Q1 2021. Upon completion, the St. Lucie West Expansion will be occupied by the existing anchor tenant of St. Lucie West, Publix Super Markets, Inc. (Publix).

The REIT also secured a new lease of 28,000 sqft with Beall’s Outlet Stores, with a tenure of seven years, which will occupy 57% of the existing space that Publix will vacate upon its relocation to the new store.

Meanwhile, the REIT’s self-storage properties have continued to remain open throughout COVID-19 and new leases have been completed on a contactless basis. Over the past two months, Millburn Self-Storage and Carteret Self-Storage have benefitted from consistent occupancy levels of approximately 91% and 60%, respectively, and new leasing activity has trended gradually upward in May.