United Hampshire US REIT collects over 80% of retail base rent in June

Retail tenants comprising 91% of the total base rental income were open for business.

United Hampshire US REIT has achieved over 80% of retail tenant base rent collection for the month of June, according to an announcement.

Retail tenants comprising 91% of the total base rental income were open for business in June as most retail tenants re-commenced operations following the easing of lockdown measures across the United States (US).

As at 30 June, approximately 70% of the tenants that were previously closed in April have reopened for business. COVID-19 transmissions are also trending down in New York, New Jersey, Maryland, and Massachusetts, where 19 of the REIT’s 22 properties are located, representing approximately 81% of the IPO portfolio by appraised value. Meanwhile, the REIT’s three properties remain open in Florida and North Carolina where COVID-19 cases have recently been increasing.

Furthermore, the REIT has received rental relief requests from certain tenants whose businesses have been adversely affected by COVID-19 and are continuing to assess the requests on a case-by-case basis. The REIT’s manager is also in talks with certain retail tenants on potential lease extensions which would be accretive to the overall weighted average lease expiry.

Meanwhile, the construction of the St. Lucie West Expansion commenced on 12 May and vertical construction has begun. The St. Lucie West Expansion remains on track to be completed by Q1 2021 and will be occupied by the existing anchor tenant of St. Lucie West, Publix Super Markets upon completion.

In addition, the REIT’s self-storage properties, Millburn Self- Storage and Carteret Self-Storage, have achieved occupancy levels of approximately 65% and 94% by units occupied, respectively. This an increase from the previously announced occupancy levels of approximately 60% and 91%, respectively. Meanwhile, for the two self-storage properties with top-ups, Elizabeth Self-Storage has leased 157 units as at 29 June, a 67% increase as compared to an earlier announcement.

However, the construction of Perth Amboy Self-Storage has been delayed slightly due to the lockdown and is expected to be completed in July instead of Q2 but is not expected to have a material impact.

The Hampshire sponsor has put in place top-up agreements for both the Elizabeth Self- Storage and Perth Amboy Self-Storage for up to $3.51m (US$2.52m) and $3.06m (US$2.2m) respectively, for a period of up to four years from the date of completion of the purchase and sale agreements. This is said to bolster the stability of these projects, which are new to the market, and help to mitigate any potential impact on pace of lease-up as a result of the pandemic.