United Hampshire US REIT FY2025: DPU 4.39¢ +8.1%, Portfolio US$774M +3.8%, Third Consecutive DPU Growth

United Hampshire US REIT (UHREIT) FY2025 (year ended 31 December 2025) delivered its third consecutive period of DPU growth, with distributable income +5.7%, DPU +8.1%, and portfolio valuation marking its fifth consecutive year of like-for-like growth since IPO.

Gross Revenue US$72.0M (-1.7%; +2.3% excl divested properties). NPI US$49.0M (-1.7%; +4.1% excl divestments). Distributable Income US$26.9M (+5.7%). DPU 4.39 US cents (+8.1%). Portfolio Appraised Value US$774.3M (+2.8% overall; +3.8% like-for-like). Total Assets US$799.4M. NAV/unit US$0.73. G&N Occupancy 97.7%. WALE 7.7yr. Aggregate Leverage 38.6% (FY2024: 38.9%). ICR 2.4x. Distribution yield 8.5% (430bps above 10yr UST). Total return FY2025: 18.0%.

Divestment: Albany Supermarket sold Jan 2025 for US$23.8M, matching independent val and 4.2% above purchase price. Proceeds redeployed into higher-yielding assets.

Acquisition — Dover Marketplace, PA (Aug 2025): Freehold grocery-anchored strip center in York County, PA for US$16.4M (4.8% discount to independent val of US$17.2M). Giant-anchored (Ahold Delhaize), 9 tenants incl. M&T Bank and Subway. 61,052sqft, 96.1% committed occ, WALE 9.3yr. UHREIT's 3rd Pennsylvania asset.

Acquisition — Wallingford Fair, CT (Jan 2026, post period): UHREIT's maiden entry into Connecticut. Freehold, US$21.4M (8.2% below val). ShopRite-anchored (operating since 2010), 100% occ, WALE 12.5yr. 3 tenants incl. Petco and Extra Space Storage.

Nov 2025 refinancing: SOFR term loan upsized and extended to US$350M (incl. US$100M revolver + US$50M delayed-draw tranche) — no significant refinancing until Feb 2028. WADR extended from 1.6yr to 3.4yr. 76.2% fixed rate / hedged (FY2024: 73.6%). Borrowing cost 5.01% (FY2024: 5.17%). Total borrowings US$311.4M. Undrawn facilities US$141.0M.

Leasing: 30 leases executed, 422,032sqft. New leases WALE 9.4yr. Tenant retention 90% since IPO. 2026 lease expiry only 2.9% of GRI. Top tenant BJ's (10.7% GRI) recorded +3.8% comparable sales. Anchor grocers Walmart (+5.3%), Publix (+4.9%), Dick's (+4.2%) delivered healthy sales growth. Self-storage avg net rental rate improved to US$25.9psf (FY2024: US$25.6psf) despite occupancy normalisation (88.7% vs 93.1%).

VALUATION: 5 consecutive years of like-for-like growth since IPO (2021: +3.7%, 2022: +1.3%, 2023: +4.7%, 2024: +2.9%, 2025: +3.8%). Notable movers: Hudson Valley Plaza +23.7% (to US$34.5M — post Lowe's/Sam's Club divestment, residual asset revalued higher); Lawnside Commons +11.0%; Lynncroft Center +11.2%; St. Lucie West +6.1%; Carteret Self-Storage +12.2%.

UHREIT's FY2025 result is a clean positive story: DPU up 8.1% driven by lower interest costs (rate cuts + debt reduction from divestment proceeds) and steady same-store NOI growth. The portfolio is well-positioned — WALE 7.7yr, 97.7% G&N occupancy, only 2.9% expiring in 2026, and triple-net leases shielding from operating cost inflation. The structural tailwind for US grocery-anchored strip centers remains strong: minimal new supply (0.3% per annum projected 2026-2030), omnichannel necessity, and the Blackstone US$4B acquisition of ROIC at 6.2% cap rate validating valuations. Key watchpoint: Self-storage occupancy at 88.7% — occupancy normalised but rental rates held up; this is a known sector-wide trend. Upcoming Upland Square mortgage maturity (Nov 2026) can be addressed via the US$50M delayed-draw tranche.