United Hampshire US REIT ("UHREIT") has been one of my lacklustre US REIT investment holdings inside my portfolios despite no apparent bad news like those facing US Manulife REIT. While most REITs such as Keppel DC REIT, DigiCore REIT and Mapletree Industrial Trust sprang back to life and shot up vivaciously over the past few days, UHREIT just went up a tiny bit and laggard far behind. It has tumbled 28% from US$0.625 per unit as at 31 August 2022 to US$0.45 per unit at one point in time during early January 2023. I was beginning to get worried that there maybe some extreme bad news like fraud that has not been officially released.
1.What happened to UHREIT?
I thought that there maybe certain news that I have missed out on UHREIT. So I reached out to a fellow investment blogger, Happy REIT Investor, whom I recalled is similarly vested in UHREIT. For those interested, please refer to the comments section for the insights shared by Happy REIT Investor in his recent portfolio posting. You can see our discussion there on UHREIT.
(Fyi: Happy REIT Investor is one of the few bloggers who has already attained the sacred financial independence with a sizeable investment portfolio built up through his astute investment skills).
2.UHREIT Distribution Yield
The current distribution yield of UHREIT is 11.75% based on its unit price of US$0.495 per unit and annualised 5.82 cents of payout. Its upcoming year end results will be released on 22 February 2023.
For those like me who pursues an income investing strategy, the ups and downs in terms of the pricing of a stock does not really matter if one adopts a long term view. As long as there are no frauds or major bankruptcy of the major tenants, I think that one can always wait it out while collecting the dividend payout.
I am actually thinking of whether to add on to UHREIT. However, it is currently already taking up 10% of my overall equity portfolios and thus will increase my concentration risk. For 2023, I intend to diversify and build up more investment holdings in non-REITs sector assets.
For those vested in UHREIT, will you still be holding on to it despite the lackluster price performance since IPO? What are your thoughts?