Shares & Derivatives
United Hampshire US REIT Acquired New Grocery Anchored Shopping Center- Improved Forward Distribution Yield Of 10.38% Per Annum.
By Investment Income for Life  •  June 10, 2022
Fast coming off the disposal of its locker storage facilities, United Hampshire US REIT ("UHREIT") wasted no time in its announcement on 9 June 2022 that it is acquiring Upland Square Shopping Center in Montgomery, Pennsylvania for US$85.7Mil. This DPU accretive deal will push up future annual distribution yield to 10.38% based on previous closing price of US$0.610 per unit. 1.Key benefits of this deal are as follow: 1.1  Additional diversification of tenants for UHREIT.  Post acquisition, UHREIT top 10 tenants concentration will drop from 60.2% to 56.8%. It thus reduces tenant concentration risk and enhances income resilience. 1.2 DPU Improvement DPU is expected to improve by 2.13% post-acquisition. 6.23 cents will mean a distribution yield of 10.38% based on the previous closing price of US$0.64 per unit. The acquisition will be funded mainly with the sales proceeds from the locker storage facilities as well as the assumption of the existing mortgage.
  1. Bad point for this deal- Leverage post acquisition crosses over the 40% mark.
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By Investment Income for Life
I am an Accountant by training and is currently working in a global MNC in the Supply Chain industry. During my free time, I enjoy reading up on topics such as stock investing, insurance planning and property investment. Since 2012, I have started penning down my thoughts on certain financial matters while striving to achieve financial independence.

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