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
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