United Hampshire Us Real Estate Investment Trust · SGX:ODBU
United Hampshire Us Real Estate Investment Trust — United Hampshire US REIT — FY2023 Earnings Presentation
41 slides from United Hampshire Us Real Estate Investment Trust's earnings presentation, Feb 22, 2024
Slide 1: Asia's First U.S. Grocery-Anchored Shopping Center & Self-Storage REIT
Asia’s First U.S. Grocery-Anchored Shopping Center & Self-Storage REIT FY2023 Financial Results 22 February 2024
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: Table of Contents
Table of Contents Page Content 4 U.S. Market Update 7 FY 2023 Key Highlights 13 FY 2023 Financial Results 18 Portfolio Update 24 Outlook 29 Investment Merits
Slide 4: U.S. Market Update
U.S. Market Update UNITED-H#PSHRE
Slide 5: U.S. Economy Remains Strong in the Face of Economic Headwinds
U.S. Market Update U.S. Economy Remains Strong in the Face of Economic Headwinds 2023 year-on-year Real GDP growth: +2.5%1 • U.S. real GDP growth rate stabilised at an annual rate of 3.3% in 4Q 2023, decreasing from 4.9% in 3Q 20231 January 2024 Unemployment Rate: 3.7%2 • The U.S. labor market almos
Slide 6: U.S. Consumer Spending Remains Resilient
U.S. Market Update U.S. Consumer Spending Remains Resilient Retail Sales Jan 2024 Grocery Sales Jan 2024 Discretionary Sales2 Jan 2024 +0.6% +2.3% -3.3% year-on-year1 year-on-year1 year-on-year1 U.S. Retail Sales normalise after peaking during the U.S. Holiday Season • U.S. retail sales have normali
Slide 7: FY 2023 Key Highlights
FY 2023 Key Highlights Colonial Square, Virginia
Slide 8: Resilient Portfolio Providing Non-Discretionary Goods and Services
FY 2023 Key Highlights Resilient Portfolio Providing Non-Discretionary Goods and Services Portfolio Valuation +4.7% High tenant Minimal lease 97.4% committed Long WALE of Portfolio valuation retention rate of rollover with only occupancy for Grocery & 7.1 years1 for increased 4.7%3 92% since IPO 2.2
Slide 9: 4Q 2023 Key Highlights: New Development Updates
4Q 2023 Key Highlights New Development Updates Publix Academy Sports Academy Sports aerial view Academy Sports aerial view Academy Sports + Outdoors at Port St. Lucie, Florida ✓ Expansion on existing excess land, a new 63,000 sq ft store was constructed and leased to Academy Sports on a 15-year leas
Slide 10: Key Leasing Updates
FY 2023 Key Highlights Key Leasing Updates 4Q 2023 Key Leasing Highlights Strong Leasing Momentum Continues into 1Q 2024 ✓ Wakefern (ShopRite) in Albany, New York ✓ Executed lease renewals totalling assigned its lease to Price Chopper 135,000 sf with LA Fitness at three properties: ✓ Price Chopper h
Slide 11: Portfolio Valuation Increased 4.7% Y-o-Y on a Like for Like Basis
FY 2023 Key Highlights Portfolio Valuation Increased 4.7% Y-o-Y on a like for like basis1 Portfolio Appraised Value (US$ million) 20 Grocery & Necessity 21 Grocery & 2 Self Storage ✓ UHREIT’s portfolio valuation increased 4.7% Y-o-Y on a Necessity like for like basis1 2 Self Storage ✓ Despite higher
Slide 12: Strong Growth in Gross Revenue and Net Property Income
FY 2023 Key Highlights Strong Growth in Gross Revenue and Net Property Income Gross Revenue Net Property Income Distributable Income Distribution Per Unit (US cents) +7.1% +7.6% -3.6% 5.88 5.54 US$ 31.9 mil Management Fee US$1.5mil Management Fee in Cash and In Cash for 2H2023 0.75 Retained US$72.2
Slide 13: FY 2023 Financial Results
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Slide 14: Prudent Capital Management with Well-Spread Debt Maturity Profile
FY 2023 Financial Results Prudent Capital Management with Well-Spread Debt Maturity Profile Adjusted Debt Maturity Profile No refinancing requirements Assuming Extension Option is Exercised (US$ million) until November 20261 176.9 No Refinancing Long weighted average debt Sensitivity to SOFR2 Requir
Slide 15: Healthy Balance Sheet
FY 2023 Financial Results Healthy Balance Sheet As at 31 Dec 2023 As at 31 Dec 2022 (US$’000) (US$’000) Investment Properties 785,001 761,052 Current Assets 22,814 21,233 Total Assets 808,758 785,903 Loans and Borrowings 323,927 314,300 Total Liabilities 374,624 358,308 Net Assets 434,134 427,595 Un
Slide 16: Attractive Dividend Yield and Price-to-Book Ratio
FY 2023 Financial Results Attractive Dividend Yield and Price-to-Book Ratio Comparative Yields (%) UHREIT - 2nd Best Performing S-REIT in 2023 240bps 430bps 560bps 680bps 5.2% 1 2 3 2 4 5 UHREIT Price-to-Book Ratio = 0.68 (times) Source: SGX SREITs & property trusts chartbook – January 2024 and U.S
Slide 17: Distribution and Distribution Reinvestment Plan (DRP) Details
FY 2023 Financial Results Distribution and Distribution Reinvestment Plan (DRP) Details Distribution and DRP Details Distribution Period 1 July 2023 to 31 December 2023 Distribution Per Unit (US cents) 2.14 Ex Date 29 February 2024 Book Closure Date 1 March 2024 Date of announcement of Issue Price o
Slide 18: Portfolio Update
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Slide 19: Consistently High Committed Occupancy for Grocery & Necessity Properties
Portfolio Update Consistently High Committed Occupancy for Grocery & Necessity Properties Grocery & Necessity Properties Committed Occupancy (%) High tenant retention rate of 92.0% since IPO 96.9 97.0 97.9 97.2 97.4 100 80 4Q 2023 FY 2023 60 40 20 NLA NLA No. No. (Sq Ft) (Sq Ft) 0 31-Dec-22 31-Mar-2
Slide 20: Occupancy at Self-Storage Properties Remains High
Portfolio Update Occupancy at Self-Storage Properties Remains High Carteret Self-Storage Occupancy rates and 100 94.2 95.8 94.7 92.4 94.6 91.3 30 average quarterly net 88.1 rental rates remained 80 25 high for both Carteret 60 20 and Millburn Self- 40 Storage despite some 15 normalization across 20
Slide 21: Diversified and High-Quality Tenant Base
Portfolio Update 21 Diversified and High-Quality Tenant Base Trade Sector Breakdown2 Top 10 Tenants1 Financial Others Services Auto Supply 1.1% 2.0% 0.7% Fitness Dental Services Discounter/Outlet 5.9% 0.7% 6.4% 36.0% Grocery and Self Storage Wholesale 6.6% Food and 8.3% Beverage ✓ Anchored by large
Slide 22: Anchor Tenants' Sales Remain Healthy
Portfolio Update Anchor Tenants’ Sales Remain Healthy Sales Ahold Delhaize: U.S. comparable sales excluding gasoline declined 1.0% -1.0% y-o-y1 y-o-y in 4Q 2023. This decline is in line with expectations, as inflation moderated further. Notably, Ahold's brand of Food Lion achieved a remarkable miles
Slide 23: Our ESG Goals and Journey
Portfolio Update Our ESG Goals and Journey Environmental Stewardship People & Community ✓ Surpassed UHREIT’s target of 100 hours of staff volunteerism in FY2023, clocking in 112 Hours ✓ Engaged with local communities in Singapore and USA for volunteering efforts Install LED lighting Engage top 10 te
Slide 24: Outlook
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Slide 25: Resiliency in Self-Storage and Strip Center Property Values
Outlook Resiliency in Self-Storage and Strip Center Property Values % Change in Green Street Commercial Property Price Index from June 2020 to December 2023 • Green Street Commercial Property Price Index is a 60% time series of unleveraged U.S. commercial property values that captures the prices at
Slide 26: Omnichannel Retailing – Leveraging Customer Experience
Outlook Omnichannel Retailing – Leveraging Customer Experience OMNICHANNEL RETAILING Buy in Store Curbside Pickup for Buy Online Pickup in Store Micro-Fulfilment of Consumers to Return/ Online/App Orders (BOPIS) Online/App Orders Exchange Goods • Retailers are increasingly data-dependent and searchi
Slide 27: Grocery & Necessity Retail Sector Continues to Demonstrate Resiliency
Outlook Grocery & Necessity Retail Sector Continues to Demonstrate Resiliency Low vacancy rates and lack of new supply keeping negotiating power on the landlord's side1 • Vacancy rates near all-time lows and high tenant retention rates1 • Minimal new supply and expected to remain low due to high con
Slide 28: Storage Demand Drivers Have Normalized with a Return of Seasonality
Outlook Storage Demand Drivers Have Normalized with a Return Of Seasonality Self Storage Remains an Affordable option for tenants Self-Storage Demand Trends2 • While self storage leasing velocity in the fall and winter months is typically quieter, there are still consumers in need of extra space, an
Slide 29: Investment Merits
Investment Merits UNITED-H#MPSH IRE
Slide 30: Key Milestones and Accolades
Investment Merits Key Milestones and Accolades SGX Fast Track Awards Indices Inclusion ✓ UHREIT’s FY2022 Annual Report was recognized as the Platinum ✓ FTSE ST Small-Cap Index ✓ Included in the SGX Fast Track, Winner at the International Hermes within 2nd year of listing, for Creative Awards 2023 ✓
Slide 31: Why Invest in United Hampshire US REIT
Investment Merits Why Invest in United Hampshire US REIT Stable Cashflows Yield & Growth • Grocery & Necessity and Self-Storage • Exposure to strong US Consumer sector properties are generally considered cycle- improving employment situation and rising agnostic and not as vulnerable to cyclical cons
Slide 32: Thank You
32 Thank You UHREIT Website Follow us on LinkedIn For enquiries, please contact: Ms Wong Siew Lu, CFA, CA (Singapore) https://www.uhreit.com/ Head of Investor Relations and Sustainability https://www.linkedin.com/company/uhreit/ Email: IR@uhreit.com 80 Raffles Place #28-21 UOB Plaza 2 Singapore 0486
Slide 33: Appendix
Appendix UNITED-H#\MPSHIRE
Slide 34: Successful Execution of Pro-Active Portfolio Management and Growth Strategy Since IPO
Appendix UHREIT’s Successful Execution of Pro-Active Portfolio Management and Growth Strategy Since IPO UHREIT AUM 30.6% Since IPO IPO FY 2021 FY 2022 FY 2023 Current Construction Acquisition Construction 12 March 2020 • Perth Amboy Self-Storage • FY2023 AUM - Accretive Acquisition • Academy Sports
Slide 35: Reputable Sponsors – UOB Global Capital & The Hampshire Companies LLC
Appendix Reputable Sponsors – UOB Global Capital & The Hampshire Companies LLC >60 year track record A Synergistic Long-Term Partnership >20 year track record 180 properties >10 year partnership US$3.7b AUM >US$1.7b AUM 3 co-managed funds >13.5 million sq ft retail space owns and/or operates 3 co-in
Slide 36: Assets Across States Focused on the East Coast
Appendix 22 Assets Across 8 States Focused on the East Coast Portfolio of 20 Shopping Centers and 2 Self-Storage Properties NLA: 3.8 million sq ft NEW YORK – G&N NEW YORK Total Property Value1: US$ 763.4 million Name City %1 Grocery & Necessity MASSACHUSETTS – G&N Garden City Sq. - BJ’s 7 Properties
Slide 37: Locations of UHREIT's Self-Storage Properties
Appendix 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 Statue of York City and metropolitan Port Newark Liberty Brooklyn areas via major h
Slide 38: Portfolio Overview - Grocery & Necessity Properties
Appendix Portfolio Overview - Grocery & Necessity Properties Committed Property Value Property Name Location Land Tenure Completion Year NLA (Sq Ft) WALE (years) Occupancy1 (US$ Million) Garden City Square - New York Freehold 2012 121,000 100.0% 8.9 57.0 BJ's Wholesale Club Garden City Square - New
Slide 39: Portfolio Overview - Grocery & Necessity Properties (Cont'd)
Appendix Portfolio Overview - Grocery & Necessity Properties (Cont’d) Committed WALE Property Value Property Name Location Land Tenure Completion Year NLA (Sq Ft) Occupancy1 (years) (US$ Million) St. Lucie West Florida Freehold 1992 381,648 97.1% 8.4 102.5 Arundel Plaza Maryland Freehold 1997 282,03
Slide 40: Portfolio Overview - Self-Storage Properties
Appendix Portfolio Overview - Self-Storage Properties Property Value Property Name Location Land Tenure Completion Year NLA (Sq Ft) Occupancy (US$ Million) Carteret New Jersey Freehold 2017 74,175 91.3% 21.4 Self-Storage Millburn New Jersey Freehold 2018 80,923 92.2% 30.8 Self-Storage Information as
Slide 41: Trust Structure
Appendix Trust Structure Unitholders Ownership of Units Distributions Trustee Services Management Services Tax Efficient Structure Trustee REIT Manager Trustee Fees Management Fees • No U.S. corporate tax (21%) and U.S. withholding tax (30%) 100.0% Ownership Dividends Dividends 100.0% Ownership Mana
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