Like clockwork, the management team of United Hampshire US REIT (“UHREIT”) delivered another set of splendid 2nd half and full year 2023 results. It’s the only US Commercial REIT to deliver improved market valuation of its investment properties relative to the disastrous drop in valuation of the US office REITs due to higher capitalization rate and discount rate from higher interest rate. Its overall aggregate leverage ratio improved slightly to 41.7% relative to FY2022 of 41.8%. Unfortunately, UHREIT seems to have been impacted by the recent crash in US office REITs market prices. Its unit price has declined -10% from its peak price of US$0.52 per unit attained earlier during the 1st week of February 2024.

1. Quick Results Highlight

Gross revenue grew +7.1% to US$72.2Mil relative to US$67.6Mil  in FY2022 while Net Property Income increased by +7.6% to US$50.6Mil relative to US$47.1Mil for FY2022. However, distributable income declined from US$33.1Mil to US$30.4Mil (-3.6% drop) in FY2023 mainly due to (i) higher interest...