Company Coverage
United Hampshire US REIT (UHU SP): 1H26: Resiliency From Focus On Essential Services
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
US$0.51
US$0.69
35.3%
US$0.72
Analyst
Highlights
- UHU generated DPU growth of 3.4% yoy in 1H26 with contributions from recently acquired Dover Marketplace and Wallingford Fair Shopping Center.
- Portfolio occupancy remains high at 97.6%, and WALE was stable at 7.9 years for Grocery & Necessity properties. Tenants providing essential services accounted for 58.5% of gross rental income.
- Valuation is attractive with a 2026 DPU yield of 9.0% (Kimco Realty: 4.7% and Regency Centers: 4.0%). Maintain BUY. Target price: US$0.69.
Analysis
- United Hampshire US REIT (UHU) delivered resilient results with DPU of 2.16 US cents for 1H26 (+3.4% yoy), which is in line with our expectation.
- Firing on all cylinders. Gross revenue, NPI and distributable income rose 5.8%, 6.4% and 5.8% yoy, respectively, in 1H26, driven by contributions from recently acquired properties, Dover Marketplace (completion: 2 Aug 25) andWallingford Fair Shopping Center (completion: 14 Jan 26), new lease commencements and embedded rental escalations. The acquisitions have integrated well and were immediately DPU accretive.
- Strong leasing momentum. UHU secured more than 260,000sf of new and renewal leases during 1H26, including lease extensions with major grocery tenants, such as Giant Supermarket and Stop & Shop. Tenants providing essential services accounted for 58.5% of gross rental income. Grocery & Necessity occupancy remains high at 97.6%, and portfolio WALE was stable at 7.9 years. Tenant retention rate was healthy at 90%. There is minimal leasing risk as only 0.6% and 4.6% of leases are expiring in 2H26 and 2027 respectively. Occupancy at the self-storage portfolio improved 4.3ppt yoy to 93.5%, reflecting healthy demand.
Highlights
- UHU generated DPU growth of 3.4% yoy in 1H26 with contributions from recently acquired Dover Marketplace and Wallingford Fair Shopping Center.
- Portfolio occupancy remains high at 97.6%, and WALE was stable at 7.9 years for Grocery & Necessity properties. Tenants providing essential services accounted for 58.5% of gross rental income.
- Valuation is attractive with a 2026 DPU yield of 9.0% (Kimco Realty: 4.7% and Regency Centers: 4.0%). Maintain BUY. Target price: US$0.69.
Analysis
- United Hampshire US REIT (UHU) delivered resilient results with DPU of 2.16 US cents for 1H26 (+3.4% yoy), which is in line with our expectation.
- Firing on all cylinders. Gross revenue, NPI and distributable income rose 5.8%, 6.4% and 5.8% yoy, respectively, in 1H26, driven by contributions from recently acquired properties, Dover Marketplace (completion: 2 Aug 25) andWallingford Fair Shopping Center (completion: 14 Jan 26), new lease commencements and embedded rental escalations. The acquisitions have integrated well and were immediately DPU accretive.
- Strong leasing momentum. UHU secured more than 260,000sf of new and renewal leases during 1H26, including lease extensions with major grocery tenants, such as Giant Supermarket and Stop & Shop. Tenants providing essential services accounted for 58.5% of gross rental income. Grocery & Necessity occupancy remains high at 97.6%, and portfolio WALE was stable at 7.9 years. Tenant retention rate was healthy at 90%. There is minimal leasing risk as only 0.6% and 4.6% of leases are expiring in 2H26 and 2027 respectively. Occupancy at the self-storage portfolio improved 4.3ppt yoy to 93.5%, reflecting healthy demand.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
US$0.51
US$0.69
35.3%
US$0.72
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at the following link: this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
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