Unitedhampshire (UHREIT) has recently shared its year-end results, which present a promising picture for investors. Here’s a quick rundown:
The company has successfully reduced its leverage to 38.9%, a move that will certainly catch the eye of its stakeholders. On the dividend front, it’s offering an annual payout of 4.06 US cents. One of the key highlights is the rental escalation, which has contributed significantly to this robust performance. Meanwhile, UHREIT maintains a solid interest coverage ratio of 2.5 times, underscoring its financial stability.
Outlook
The results from this year have been nothing short of impressive. Thanks to rental escalations, UHREIT has witnessed a notable increase in revenue. Moreover, it seems the cost of interest might have reached its peak, as there has been a noticeable decline in the interest expenses for the fourth quarter.
Looking ahead, I am optimistic that UHREIT will opt to boost its dividends. This is likely driven by the ongoing rise in rental income and the potential decision by the REIT manager to receive compensation in Units if the share price climbs to 60 US cents.
Capital Gain
Conventional wisdom suggests that the main allure of investing in REITs lies in their dividends rather than in capital gains. Yet, UHREIT appears poised to challenge this notion by offering both. The resilience of its grocery sub-sector is gaining recognition among investors, highlighting the dependable nature of its dividends. At 48 US cents, with a yield of 8.4%, this REIT is increasingly seen as a great value opportunity. There’s a growing sentiment that a re-rating might be on the horizon…
