United Hampshire Us Real Estate Investment Trust · SGX:ODBU
United Hampshire Us Real Estate Investment Trust — United Hampshire US REIT — Shareholder Meeting (April 2022)
36 slides from United Hampshire Us Real Estate Investment Trust's shareholder meeting presentation, Apr 26, 2022
Slide 1: United Hampshire US REIT Annual General Meeting
1 UNITED HAMPSHIRE US REIT UHREIT Website Follow us on Linkedin Annual General Meeting https://www.uhreit.com/ 26 April 2022 https://www.linkedin.com/company/uhreit/ 1
Slide 2: Important Notice
2 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
Slide 3: UHREIT: Asia's First U.S. Grocery-Anchored Shopping Center and Self-Storage REIT
UHREIT: Asia’s First U.S. Grocery-Anchored Shopping 3 Center and Self-Storage REIT High Grocery & Necessity Total Property Value 20 Grocery & Necessity & Long WALE of 8.0 years2 Committed Occupancy of US$688.5 million1 4 Self-Storage Properties 95.3% Strong Sponsors (UOB Significant leasing Portfoli
Slide 4: Key Highlights
4 Key Highlights Penrose Plaza, Pennsylvania
Slide 5: Financial Highlights
5 Financial Highlights Distribution Income Distribution Per Unit Net Property Income FY 2021 US$31.2 mil FY 2021 6.10 US cents FY 2021 US$41.9 mil 3.0% vs IPO Forecast 0.2% vs IPO Forecast 0.7% vs IPO Forecast
Slide 6: Conservative Gearing with No Refinancing Required for 2022
6 Conservative Gearing with No Refinancing Required for 2022 Conservative Weighted Average Interest Coverage Gearing Interest Rate Ratio 39.0% 2.63% 6.5x Debt Maturity Profile (US$million) Weighted Average 137.6 Well-Spread Debt Debt Maturity Maturity Profile 2.5 years 97.5 40.0 No refinancing Fixed
Slide 7: Asset Management Highlights
7 Asset Management Highlights • Completed the construction of Perth Amboy Self- Storage commenced leasing • Devoted larger parking activities in Jan 2021 area to facilitate curbside • Achieved 44.8% of pick-up occupancy within the first year of operation Perth Amboy Self-Storage Curbside Pick-Up • D
Slide 8: Increasing Portfolio Value
8 Increasing Portfolio Value Completed the Acquisitions of Penrose Plaza and Colonial Square in November 2021 Portfolio Valuation (US$’mil) +17.6% 688.5 1 +0.2% 81.5 Penrose Plaza, Pennsylvania Colonial Square, Virginia 584.5 585.5 607.0 Cap Rate2 Average for Grocery & Necessity Properties 6.51% Ave
Slide 9: Strategic Sale of Elizabeth and Perth Amboy Self-Storage Properties
Strategic Sale of Elizabeth and Perth Amboy Self-Storage 9 Properties +17.7% +4.9% +2.5% $45.5m Elizabeth Self-Storage Perth Amboy Self-Storage $43.4m $44.4m • Entered into an agreement to sell the 2 Self-Storage Top-Up: Properties at an aggregate price of US$45.5m $4.7m • 2.5% over the appraised va
Slide 10: Omnichannel Retailing – Key to Success
10 Omnichannel Retailing – Key to Success Buy in Store • Quick adoption/expansion of curbside pickup, buy-online-pickup-in-store options and offered same-day delivery by many retailers • Benefited from the adoption of omnichannel strategy, many retailers look Curbside Pickup set to double down on cr
Slide 11: Foot Traffic and Ecommerce Trends
11 Foot Traffic and Ecommerce Trends • Grocers continue to lead the pack as demand seems to be • Amid fewer lockdowns and a strong desire to 'return to preserved from extended work-from-home protocols normal', '21 physical sales growth surpassed ecommerce sales growth for the very first time • Other
Slide 12: Asset Management Highlights
12 Asset Management Highlights Colonial Square, Virginia
Slide 13: Primarily Leased to Cycle Agnostic Tenants Providing Essential Services
Primarily Leased to Cycle Agnostic Tenants Providing 13 Essential Services Essential Services1 Auto Supply Store, 0.8% Dental Services, ✓ Grocery stores, farmer's markets and farms Financial Services, 0.6% ✓ Hardware and home improvement stores 2.2% Others, 0.9% ✓ Pharmacies Fitness, 5.4% ✓ Medical
Slide 14: Significant Leasing Progress for Leases Expiring in 2022
Significant Leasing Progress for Leases Expiring in 2022 and 14 Only 1.5% Leases Remain for Renewals No. of Area Lease Maturity Profile1 FY 2021 New/ Renewal of Leases2 Leases (Sq Ft) 73.4% New Leases: • Consumer Services – 7 tenants • Food & Beverage – 5 tenants 16 66,682 • Consumer Goods – 2 tenan
Slide 15: Healthy Increase in Self-Storage Rental Rates
15 Healthy Increase in Self-Storage Rental Rates Average Quarterly Net Rental Rate (US$/psf)1 Steadily 25 increasing consumer awareness 20 15 Carteret Self-Storage Millburn Self-Storage 10 Elizabeth Self-Storage Perth Amboy Self-Storage Driven by 5 Ds 5 Smaller housing Demand - Death, Divorce, Declu
Slide 16: ESG Highlights and Targets
16 ESG Highlights and Targets Maintain high standards of corporate governance and transparency Zero instances of non-compliance with anti-corruption laws and regulations Governance Ranked a joint 4th in the Governance Index for Trusts (GIFT) 2021 Included in the SGX Fast Track for its good complianc
Slide 17: Attractive Dividend Yield and Price-to-Book Ratio
17 Attractive Dividend Yield and Price-to-Book Ratio Comparative Yields Price-to-Book Ratio (times) 9.4% 0.87 700bps 710bps 620bps 430bps 5.1% 3.2% 2.3% 2.3% UHREIT 1 Singapore 10-year Govt US 10-year Treasury STI Yield 3 FSTREI Yield 4 UHREIT 5 2 Bond Yield Yield 2 Sources: FTSE Russell, Monetary A
Slide 18: Outlook
18 Outlook Albany ShopRite – Supermarket, New York
Slide 19: US Economy Update
19 US Economy Update 4Q 2021 Annualised Real GDP Growth: +6.9%1 Real GDP Growth1 • Outperforming estimate, the GDP growth is led by 40% higher personal consumption and business activities 20% 0% Mar 2022 Unemployment Rate: 3.6%2 -20% • Nonfarm payroll employment rose by 431,000 in Mar 20222 -40% 201
Slide 20: US Retail Sales Update
20 US Retail Sales Update Mar 2022 Inflation: +8.5%2 Retail Sales 1Q 2022 Retail Sales FY 2021 • Although inflation has weighed on consumer confidence, it has not weakened consumer spending activity • Fed expected to hike interest rates multiple times in 2022 Feb 2022 Personal saving rate: 6.3%3 +12
Slide 21: Outlook – Sector
21 Outlook – Sector • By the end of December 2021, major retailers had announced 5,083 store openings as opposed to 5,079 store closures according to Coresight Research1 • Brick-and-mortar sales growth was strong at nearly 20% in 2021, exceeding ecommerce growth2 • Leasing momentum is strong, with a
Slide 22: Thank You
22 UHREIT Website Follow us on Linkedin Thank You https://www.uhreit.com/ https://www.linkedin.com/company/uhreit/ 22
Slide 23: Appendix
23 Appendix Lawnside Commons, New Jersey
Slide 24: Key Investment Merits
24 Key Investment Merits • Cycle-agnostic – Grocery & Necessity and Self-Storage are generally considered cycle- Stable agnostic and not as vulnerable to cyclical shifts in the economy Cashflows • Grocery & Necessity Properties – Long WALE of 8.0 years1 with largely triple net leases and high occupa
Slide 25: Financial Results
25 Financial Results FY 2021 FY 2021 Variance Actual Forecast (US$’000) (US$’000) (%) Gross Revenue 55,195 56,563 (2.4) Net Property Income (NPI) 41,946 41,672 0.7 Distributable Income 31,195 30,278 3.0 DPU 6.10 6.09 0.2 (US cents) 1. DPU of 3.05 US cents for 2H 2021 comprise Advanced Distribution o
Slide 26: Balance Sheet
26 Balance Sheet As at 31 Dec 2021 US$’000 Investment Properties 711,650 Current Assets 17,497 Total Assets 729,496 Total Loans & Borrowings 271,639 Total Liabilities 310,237 Net Assets 419,259 Units in Issue and to be Issued (’000) 558,660 NAV per Unit (US$) 0.75 Adjusted NAV per Unit (US$) 0.73
Slide 27: Anchor Tenants' Sales Remain Healthy Compared Against Higher Sales in 2020
Anchor Tenants’ Sales Remain Healthy Compared Against 27 Higher Sales in 2020 Sales Sales 4.8% y-o-y1 5.6% y-o-y1 Contributing Contributing 9.0% of rental2 4.9% of rental2 Ahold Delhaize: Despite the unfavorable weather, U.S. comparable sales Walmart: U.S. comparable sales grew 5.6% yoy in 4Q and 6.
Slide 28: 24 Assets Across 8 States Focused on the East Coast
28 24 Assets Across 8 States Focused on the East Coast Massachusetts – Grocery & Necessity New York – Grocery & Necessity Name City % by Asset Value Name City % by Asset Value BJ's Quincy Quincy 5.1% Hudson Valley Plaza Kingston 7.2% Fairhaven Plaza Fairhaven 2.8% Garden City Sq. - BJ’s Garden City
Slide 29: Locations of UHREIT's Self-Storage Properties
29 Locations of UHREIT’s 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 metropolitan Statue of areas via major highways and public transportation P
Slide 30: Trust Structure
30 Trust Structure Unitholders Ownership of Units Distributions Trustee Services Management Services Trustee REIT Manager Trustee Fees Management Fees Tax Efficient Structure 100.0% Management Dividends Dividends 100.0% Ownership Ownership Agreement Singapore Intercompany • No U.S. corporate tax Sin
Slide 31: Income Stability & Diversification Across the Portfolio
31 Income Stability & Diversification Across the Portfolio Base Rent by Segment1 NPI by Segment1 Base rent by Location1 NPI by Location1 Pennsylvania, 0.9% Pennsylvania, 1.0% Self-Storage, Virginia, 0.5% 8.5% Self-Storage North Carolina, 5.4% North Carolina, 5.1% Virginia, 0.6% 4.8% Massachusetts, N
Slide 32: Top Tenants
32 Top 10 Tenants1 Anchored by large, creditworthy tenants, that focus on resilient grocery, discounters, wholesale and home improvement 12.2% 11.7% 9.0% 5.9% 4.9% 4.8% 4.1% 3.3% 3.2% 1.6% Burlington Stores, Inc Ahold Delhaize / Lowe's Companies, Inc Supermarkets Publix Super Markets Inc Wakefern Fo
Slide 33: Portfolio Overview (Grocery & Necessity Properties)
33 Portfolio Overview (Grocery & Necessity Properties) Land Completion Committed Property Value Property Name Location NLA (Sq Ft) WALE (years) Tenure Year Occupancy1 (US$ Million) Garden City Square - New York Freehold 2012 121,000 100.0% 10.9 48.0 BJ's Wholesale Club Garden City Square - New York
Slide 34: Portfolio Overview (Grocery & Necessity Properties)
34 Portfolio Overview (Grocery & Necessity Properties) Completion Committed WALE Property Value Property Name Location Land Tenure NLA (Sq Ft) Year Occupancy1 (years) (US$ Million) Lawnside Commons New Jersey Freehold 1970 151,076 100.0% 6.7 34.6 318,323 St. Lucie West Florida Freehold 1992 (with Ne
Slide 35: Portfolio Details (Self-Storage Properties)
35 Portfolio Details (Self-Storage Properties ) Property Value Property Name Location Land Tenure Completion Year NLA (Sq Ft) Occupancy (US$ Million) Carteret New Jersey Freehold 2017 74,125 88.1% 22.2 Self-Storage Millburn New Jersey Freehold 2018 80,943 94.8% 24.5 Self-Storage Elizabeth New Jersey
Slide 36: The Sponsors – UOB Global Capital and The Hampshire Companies LLC
The Sponsors – UOB Global Capital and The Hampshire 36 Companies LLC A synergistic long-term partnership 10 year partnership >20 year track record >60 year track record 3 co-managed funds US$2.9b AUM 1 150 properties 3 co-investment US$2.0b AUM 1 managed portfolios >11 million sq ft retail space acq
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