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2 days ago, 12:16 AM
$United Hampshire Reit USD(ODBU.SG)
United Hampshire US REIT: Flight or Fight?
Another 25bps hike to 3.75–4.00% is hardly good news for REITs. Higher-for-longer rates mean refinancing stays expensive and investors can demand more yield.
UHREIT, however, isn’t starting from a weak position. 1H FY2026 revenue rose 5.8% to US$37.8m, NPI grew 6.4% to US$25.5m and distributable income rose 5.8% to US$13.7m. DPU reached 2.16 US cents, while occupancy remained strong at 97.6%. Net leverage was 39.7%.
At around S$0.48, the REIT trades at roughly 0.66x NAV and offers close to a 9% annualised yield. The problem is the chart: the price has slipped from around S$0.54 to its 52-week low, showing that sentiment remains fragile.
So, flight or fight? Neither blindly. UHREIT’s defensive grocery exposure and cash yield provide a cushion, but rates can stay painful for longer.
For income investors, staying invested while averaging in makes more sense than chasing the yield. But keeping some powder dry—and looking beyond REITs—is equally important.
Not financial advice.
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