United Hampshire US REIT posts 3Q21 net property income rose 6 percent as US consumer spending recovers

The Penrose Plaza in Philadelphia, Pennsylvania. United Hampshire US REIT entered a deal to acquire the property in October 2021. Credit: United Hampshire US REITThe Penrose Plaza in Philadelphia, Pennsylvania. United Hampshire US REIT entered a deal to acquire the property in October 2021. The property is anchored by a ShopRite supermarket outlet. Credit: United Hampshire US REIT

United Hampshire US REIT reported Wednesday its third quarter net property income increased 6.1 percent on-year to US$10.3 million, amid rising occupancy and a recovery in U.S. consumer spending.

Gross revenue for the July-to-September period grew 5.8 percent on-year to US$13.6 million, the REIT said in a filing to SGX.

Distributable income for the quarter rose 4.1 percent on-year to US$7.7 million, the REIT said.

“Our tenants for Grocery & Necessity Properties, mainly in essential services, continued to benefit from the rising U.S. consumer spending, and a rebound in strip centers’ foot traffic,” Robert Schmitt, CEO of the REIT’s manager, said in the statement. “We continued to see Food & Beverage, Consumer Goods and Services tenants experiencing improvement in performance, forming a majority of the new and renewal leases signed during this period.”

Gross revenue missed the forecast from the REIT’s prospectus dated 3 March 2020 by 4.9 percent, net property income missed by 1.6 percent and distributable income was nearly in-line with the forecast, which was made prior to the Covid-19 outbreak being labeled a pandemic on 11 March 2020, the REIT said.

The occupancy of the grocery and necessity properties was at 95.5 percent up from 94.8 percent at end-June, with rental collections at 99 percent for the January-to-September period, the filing said.

“Self-Storage leasing activities and rental rates were affected by the pandemic and anti-price gouging law. However, occupancies have been trending upwards after Covid-19 related lockdown guidelines were loosened,” United Hampshire US REIT said. “Collections for rents that were deferred due to Covid-19 have been on schedule.”

The anti-gouging law limited landlords’ ability to assess rental rate increases on existing customers, the filing said.

United Hampshire US REIT holds 18 grocery and necessity properties, mainly strip malls, on the East Coast of the U.S. and four self-storage properties. The total property value was at US$584.9 million as of end-September, the REIT said.

The REIT said it expected to complete the acquisition of two properties — Penrose Plaza in Pennsylvania and Colonial Square in Virginia — and have them start contributing from the fourth quarter of this year.

Read United Hampshire US REIT’s filing to SGX.