United Hampshire US Real Estate Investment Trust · SGX:ODBU
United Hampshire US Real Estate Investment Trust — United Hampshire US REIT — FY2020 Earnings Presentation
35 slides from United Hampshire US Real Estate Investment Trust's earnings presentation, Feb 26, 2021
Slide 1: United Hampshire US REIT Financial Results 12 March to 31 December 2020
UNITED HAMPSHIRE US REIT Financial Results for the period 12 March to 31 December 2020 26 February 2021 1
Slide 2: Important Notice
Important Notice This presentation is for information only and does not constitute or form part of an offer, invitation or solicitation of any offer to purchase or subscribe for the Units in Singapore or any other jurisdiction nor should it or any part of it form the basis of, or be relied upon in c
Slide 3: 1. Key Highlights
Parkway Crossing, Maryland 1. Key Highlights
Slide 4: Key Highlights
Key Highlights Self-Storage Occupancies Continued to Trend Upward 2H 2020 Distributable 2H 2020 Carteret Self-Storage4 Income Distribution Per Unit 93.7% Conservative Gearing 93.0% US$15.0 mil 3.03 US Cents 90.1% 36.2% 2.0% higher than 1.3% higher than Forecast1 Forecast1 2Q 2020 3Q 2020 4Q 2020 Mil
Slide 5: 2. Financial Highlights
St. Lucie West, Florida 2. Financial Highlights 5
Slide 6: Key Highlights: Distributable Income and DPU Above IPO Forecast
Key Highlights 2H 2020 Distributable Income and DPU are 2.0% and 1.3% Higher Than IPO Forecast Respectively 2H 2020 (1 Jul to 31 Dec 2020) 12 Mar (IPO) to 31 Dec 2020 Actual Forecast1 Variance Actual Forecast1 Variance (US$’000) (US$’000) (%) (US$’000) (US$’000) (%) Gross Revenue 26,305 26,697 (1.5%
Slide 7: Balance Sheet
Balance Sheet As of 31 Dec 2020 US$’000 Investment Properties 608,667 Current Assets 20,642 Total Assets 629,567 Total Loans & Borrowings 217,090 Total Liabilities 252,338 Net Assets 375,319 Units in Issue and to be Issued (’000) 497,354 NAV per Unit (US$) 0.75 Adjusted NAV per Unit (US$) 0.72 7
Slide 8: Prudent Capital Management with No Refinancing Requirements until 2023
Key Highlights Prudent Capital Management with No Refinancing Requirements until 2023 Weighted Conservative High Interest Undrawn Average Interest Fixed rate debt Leverage Coverage Ratio Committed RCF Rate 36.2% 2.83% 6.3 times US$20 mil 100% Debt Maturity Profile (US$million) 91.5 87.6 No refinanci
Slide 9: Distribution Details
Distribution Details Distribution Period 1 Jul 2020 to 31 Dec 2020 Distribution Per Unit (US cents) 3.03 Ex Date 5 Mar 2021, Friday Book Closure Date 8 Mar 2021, Monday Distribution Payment Date 31 Mar 2021, Wednesday Big Pine Center, Florida Hudson Valley, New York Parkway Crossing, Maryland 9
Slide 10: 3. Portfolio Updates
BJ's Quincy, Massachusetts 3. Portfolio Updates
Slide 11: 22 Assets Across 6 States Focused on the East Coast
22 Assets Across 6 States Focused on the East Coast New York – Grocery & Necessity Massachusetts – Grocery & Necessity % by Asset Name City % by Asset Value Name City Value Garden City Sq. BJ’s Garden City 7.8% BJ's Quincy Quincy 5.9% Wholesale Hudson Valley Plaza Kingston 7.7% Fairhaven Plaza Fairh
Slide 12: Property Valuation
Property Valuation 31 Dec 2020 30 Sep 2019 Change Cap Rate (IPO Val Date) (US$’000) (US$’000) (%) (%) Grocery & Necessity Properties Garden City Square – BJ’s Wholesale Club 45,900 47,900 -4.2% Garden City Square – LA Fitness 21,100 21,700 -2.8% Albany ShopRite – Supermarket 22,850 22,850 0.0% Alban
Slide 13: Primarily Leased to Cycle Agnostic Tenants Providing Essential Services
Primarily Leased to Cycle Agnostic Tenants Providing Essential Services 100% of the tenants are open for business since Sept 2020 Essential Services2 ✓ Grocery stores, farmer's markets and farms Auto Supply Store, 0.9% ✓ Hardware and home improvement stores Financial Services, ✓ Pharmacies 1.1% Othe
Slide 14: Anchor Tenants are Thriving in the Omni-Channel Environment
Anchor Tenants are Thriving in the Omni-Channel Environment Store Visit/ Pick Up/ Return Product • Multi-channel retail is in Store Discovery the future as consumers demand a seamless experience toggling between channels • Many retailers fulfill a large portion of online Fulfill from Buy in demand t
Slide 15: Superior Anchor Tenants Achieving Strong Sales Growth
Superior Anchor Best-of-breed Tenants tenants with Achieving strong business models and sales growth Strong Sales Growth 4Q Sales 4Q Sales 11.2% y-o-y1 28.6% y-o-y1 Contributing Contributing 10.4% of rental2 6.8% of rental2 Ahold Delhaize: U.S. comparable sales excluding gas was Lowe’s: U.S. compara
Slide 16: Initiatives to Support the Tenants during COVID-19
Initiatives to Support the Tenants during COVID-19 Designating selected parking spaces at the 1 properties for curbside pick-up Permitting new outdoor dining areas enabling 2 tenants to set-up outdoor tents 3 Addressing requests for rent relief while balancing the needs of the portfolio 16
Slide 17: Long Lease Maturity Profile
Long Lease Maturity Profile • Grocery & Necessity Properties maintained high No. of Area occupancy of 94.7% Leases (Sq Ft) • Low leasing risk with only 3.4% of leases1 expiring in 2020 New/Renewal of 2021 25 319,000 Leases2 • Majority of the leases benefit from rental increases during the lease term
Slide 18: Self-Storage as a Resilient and Cycle-Agnostic Asset Class
Self-Storage as a Resilient and Cycle-Agnostic Asset Class Rolling monthly leases with average stay of 1 to 2 years, and rent Demand adjustments 1 to 2 times per year Drivers 1. Steadily 4. Smaller increasing housing Yield management consumer arrangements systems using awareness algorithms to allow
Slide 19: Locations of Self-Storage Properties
Locations of Self-Storage Properties Undersupply of Self-Storage facilities in New York Metro Area Newark Liberty Manhattan Int’l Airport Jersey City Millburn Self- Storage Regional access to New York City and Statue of Port Newark Liberty Brooklyn metropolitan areas via major Elizabeth highways
Slide 20: Development Initiatives Updates
Development Initiatives Updates New Publix Store – St. Lucie West, Florida • Construction commenced in May 2020 • Project is on track for completion in 1Q 2021 • Leasing Updates for the building Publix is presently occupying: o Secured Beall’s Outlet Stores, which will occupy 57% of the existing Pub
Slide 21: Development Initiatives Updates
Development Initiatives Updates Perth Amboy Self-Storage, New Jersey • This 697-unit facility is the first institutional quality self-storage facility to be developed in Perth Amboy • Construction has been completed and leasing activities have commenced in Jan 2021 • Occupancy as at 22 Feb 2021 was
Slide 22: 3. Outlook
Arundel Plaza, Maryland 3. Outlook
Slide 23: Outlook – Macroeconomic
Outlook – Macroeconomic • Strong GDP Growth Projected – GDP figures are US Unemployment Rate3 expected to grow between 4% and 5.2% in 1H 20211 14.7% • Wide scale vaccination underway – Around 65 11.1% million doses were delivered in the US as at 24 Feb 13.3% 20212 8.4% 10.2% 6.9% 6.7% • Improving em
Slide 24: Outlook – Sector
Outlook – Sector • Grocery & Necessity Retailers are hiring and/or have announced plans to open in more locations. Value- oriented retailers were in the strongest positions pre- pandemic and have performed incredibly well1 • Around 87% of shoppers intend to stay loyal to their preferred brick-and-mo
Slide 25: Attractive Comparative Yield
Attractive Comparative Yield 9.0% Tax Efficient Structure 400bps 820bps 810bps 650bps • No U.S. corporate tax 870bps (21%) and U.S. withholding tax (30%) 5.0% • No Singapore corporate tax (17%) and withholding tax (10%) 2.5% • Minimal taxes 0.8% 0.9% 0.3% incurred 2 United FSTREI Yield Singapore 10-
Slide 26: Thank You
Thank You For enquiries, please contact: (Ms) LENG Tong Yan Investor Relations lengtongyan@uhreit.com 80 Raffles Place #28-21 UOB Plaza 2 Singapore 048624 26
Slide 27: 4. Appendix
Albany ShopRite - Supermarket, New York 4. Appendix 27
Slide 28: UHREIT's Competitive Advantage
UHREIT’s Competitive Advantage Tenants in the portfolio provide consumers with convenience, value, and a broad range of non-discretionary products and services • Grocery & Necessity and Self-Storage properties are generally considered cycle agnostic and not as vulnerable to cyclical shifts in the ec
Slide 29: U.S. Stimulus Initiatives
U.S. Stimulus Initiatives • The U.S. Government has introduced legislation to combat the economic impact of COVID-19 and provide relief to the U.S. consumer. The primary stimulus initiatives are summarised below: • Coronavirus Aid, Relief, and Economic Security Act (CARES Act) – over $2 trillion in
Slide 30: Trust Structure
Trust Structure Unitholders Ownership of Units Distributions Trustee Services Management Services Trustee REIT Manager Trustee Fees Management Fees Management 100.0% Ownership Dividends Dividends 100.0% Ownership Agreement Singapore Sub 1 Singapore Sub 2 100.0% voting shares Distributions Singapore
Slide 31: Income Stability & Diversification Across the Portfolio
Income Stability & Diversification Across the Portfolio Gross Revenue by Segment1 Gross Revenue by Location1 North Carolina Self- 4% storage Florida New York 5% 15% 35% Maryland 16% Grocery & Massachusetts Necessities 7% New Jersey 95% 23% NPI by Segment1 NPI by Location1 Self- North Carolina storag
Slide 32: Top Tenants
Top 10 Tenants1 Anchored by large, creditworthy tenants, that focus on resilient grocery, discounters, wholesale, home improvement and F&B sectors 13.5% 12.2% 10.4% 6.8% 5.7% 5.5% 4.8% 4.0% 1.9% 1.9% Home Depot USA, Inc LA Fitness Wakefern Food Corp. / Lowe's Companies, Inc Walmart Inc. / PetSmart,
Slide 33: Portfolio Overview (Grocery and Necessity Properties)
Portfolio Overview (Grocery and Necessity Properties) Land Completion WALE Property Value Property Name Location NLA (Sq Ft) Occupancy Tenure Year (years) (US$’000) Garden City Square - BJ's Wholesale New York Freehold 2012 121,000 100.0% 12.2 45,900 Club Garden City Square New York Freehold 2013 55
Slide 34: Portfolio Overview (Grocery and Necessity Properties)
Portfolio Overview (Grocery and Necessity Properties) Property Completion WALE Property Value Location Land Tenure NLA (Sq Ft) Occupancy Name Year (years) (US$’000) Lawnside New Jersey Freehold 1970 151,076 100.0% 4.6 32,800 Commons 262,686 (without St. Lucie West Expansion) St. Lucie West Florida F
Slide 35: Portfolio Details (Self-Storage Properties)
Portfolio Details (Self-Storage Properties ) Completion Property Value Property Name Location Land Tenure NLA (Sq Ft) Occupancy Year (US$’000) Carteret New Jersey Freehold 2017 74,075 94.2% 17,000 Self-Storage Millburn New Jersey Freehold 2018 80,918 91.2% 21,200 Self-Storage Elizabeth New Jersey Fr
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