This REIT Paid 9.1% Dividend and Still Went Higher, Beating Singapore Condo Prices and Rental

One year ago, in December 2024, United Hampshire US REIT was trading at 45.5 US cents. At the time, Business Times wrote an article where the reporter too felt owning instruments such as Singapore listed REITs was better than owning a private property for investment " Why lock up millions in a Singapore condo for low single-digit returns when a boring, necessity-based REIT was paying you real cash? 

For simplicity, I offered a comparison against a REIT which I had a strong conviction in.

United Hampshire US REIT rents retail spaces across United States mainly to Grocery supermarkets, banks as their branch store front, F&B outlets. In a nutshell, the REIT is positioned as a stripe mall, the heartland mall style similar to Singapore's Fraser Centrepoint Trust.

A year later, the numbers have largely answered this question.

Capital Gains

United Hampshire US REIT closed at 50.5 US cents. That is an 11% capital gain. Now contrast this with Singapore private residential property, using official Urban Redevelopment Authority (URA) data. 

According to URA’s Private Residential Property Price Index, non-residential private home prices rose 5.7% on a Q3-to-Q3 comparison basis （Q3 2024 to Q3 2025). This URA index measures pure price movement only, excluding agent commission of 2% and property income taxes. 

Factoring a 50% leverage for a private property purchase and an interest expense cost of 2.6%, the private home leveraged return is 10.1% capital gain.

United Hampshire US REIT Wins

Dividend vs Rental Returns

United Hampshire US REIT paid 4.14 US cents, this gives 9.1% yield. Tax free, incurring no IRAS taxes

Private Home only gave 4% yield, and you have an incoming IRAS tax bill 

United Hampshire US REIT Wins

Capital Structure of the REIT

The REIT is in the stable US basic consumer segment and have signed long lease periods with its supermarket tenants

Its leverage ratio is 40%, much lower than many Singapore REITs and has no refinancing risk until 2029.

A year on, the lesson is clear: high-yielding, well-managed REITs can outperform traditional residential property on a total-return basis, especially when measured against official URA data. While property remains a stable, long-term store of wealth, this comparison reinforces a simple truth: in today’s environment, income-producing REITs can be the smarter to grow your wealth. Hopefully this lesson will ring true end 2029

United Hampshire REIT 3Q Update- Loan Refinancing and Higher Distributable Income with 33% upside

 UtdHampshire US REIT posted two updates in recent months. Below are a key summary:

• Refinanced A New Loan Facility which ensures no refinancing risk until 2029
• Distributable income for 3Q2025 was 15.5% higher than last year's 
• Acquisition of Dover Marketplace in Aug 2025 and 5,000 sq ft in Florida Blue Expansion will increase distributable income

DPU Set to Rise

In 1H2025, DPU was at 2.09 US cents. Factoring in the acquisition in August 2025, distributable income was US$7 million (1.17 US cents). If we put it on a half year basis, it is likely Utd Hampshire US REIT DPU will have 2.35 US cents.

The second positive is SOFR rate is now reducing for its tied to the US Fed interest rates which is reducing. This means the REIT will be reporting higher earnings and higher cashflow. However, my view the REIT manager will likely reduce its payout ratio from 96% down to 90%. Hence, DPU will remain at 2.35 US cents on a half yearly basis for a few financial 6-month period. This equates to 4.7 US cents in annual dividend

I personally expect Utd Hampshire US REIT to maintain dividend at this number even with declining US interest rates. On a 51 US cents share price, and annual dividend of 4.7 US cents, the share price is a 9.2% dividend yielder

This is rather generous, and it will not be unreasonable to expect a yield compression to 7% after market realizes the resilience of its dividend mainly because of its contractual 3+3+3 leases and tenants who are grocers and banks. Target price is 68 US cents

Refinancing Risk Deferred Until 2029

The REIT has secured a new loan facility which covers the refinancing of the future Upland Mortgage. The new loan deal is tied to SOFR rate again (current SOFR =3.92%). Based on the effective interest rate Utd Hampshire US REIT pays, previously Utd Hampshire US REIT's loan facility was on a SOFR + 1.5% margin. New loan deal should be the same. 

With a long way to go before the next refinancing, investors can be rest assured the REIT can continuously give out dividend and at 39% leverage ratio, this REIT is geared in a comfortable range. The REIT manager has an easy job. At such gearing, I feel no further acquisition should be done.

Portraying the REIT as a conservatively geared entity with 9% dividend yield should be the message it is drumming to the investing community. At 51 US cents, it is a good purchase with a much higher upside.

Finalized the Portfolio With Many Singapore Mid-Small Caps

Following on the idea to "revitalize the Singapore stock" market, I have finalized my portfolio with the purchase of more mid cap stocks in my portfolio.

Unlike active fund, it will be passive without much movement from now. Interestingly, one will observe I have totally sold off Olam and new additions are Frencken, YZJ Financial and Yanlord.

Why I have returned to YZJ Financial is so that I have some exposure to the financial sector + aligning myself in instance YZJFH is able to redeem its China debt investments successfully. For Frencken, I am vested for the financial effects it will reap when it completes the building of its larger production capacity factory in 2027.

It's a Dividend Portfolio

Based on forward dividend estimates, many Singapore stocks in the portfolio provide high dividend, with estimated yield of 4.5% on this portfolio. This is due to Alibaba （which can be bought via SDR） being a large component with little dividend. It is estimated United Hampshire and Asian Pay TV will provide about the same amount of dividend as 2025.

For PRIME US REIT, an increase in dividend will start from 2027 when new rentals start their rent collection phase.

As this continues, the expectation is that a $70,000 dividend level will be achieved in 2027

Current Portfolio Value is $1,215,000

From 2026, I will be recording the dividend received from the below portfolio composition.

Asian Pay TV Trust 3Q Results- Stable 10% Dividend Yield and Paring Down Debts

Asian Pay TV Trust (APTT) has released their 3Q results, the first full results after their refinancing of debt. Of which significant new information can be found. The summary of the results is as follows:

• Overall Revenue Still in Decline as no of TV subscribers in Traditional TV continues to fall
• 90% of Onshore Debt has been hedged at 1.54% Taiwan TAIBOR, indicating overall debt interest rate to 3.6-3.7%
• Management guided the additional interest cost of S$2 million to S$3 million for this year with interest expense to decline by $2 million next year
• 2025 Dividend Still Set for 1.05 SG cents

Cashflow and Dividend

Declining EBITDA margins leads to downstream less cash generated. Over the next 7 years, it is likely APTT will generate $100-$120 million annually.

With annual CAPEX needs of $28 million, taxation of $10 million, interest expense of $40 million (and declining）, there is sufficient headroom to maintain the 1.05 SG cents dividend which requires $19 million over the next 7 years.

Another Important thing is paying down the Debt.

Over the past 5 years, APTT has started to shrink its debt. However, one would notice "Net debt to EBITDA" ratio has increased. Thish indicates APTT EBITDA (Cashflow) is shrinking faster than it is shrinking its debt.

This is a ratio to keep watch; a ratio that is 10 or above indicates the cashflow has fallen too fast relative to the shrinking of debt. APTT's Taiwanese bankers would be worried. That said, APTT's current 8.1 ratio is still good and it has an interest coverage ratio of 3.8 times. 

For REITs, ICR of below 2 times is where it is dangerous; however, APTT is at 3.8 times which shows it is relatively safe.

As an investor, I am looking at how fast APTT pays down before the next tranche of refinancing in 2032. If APTT is able to reduce the debt from 1,163 million to 800 million by 2032; I believe dividend will maintain.

Baseline Expectations and Target Price

Much of APTT's future hinges on how well the Trust Manager deleverages while it encounters slowing cashflow and overall revenue. If executed properly, the baseline is that APTT will provide 1.05 SG cents of dividend annually to shareholders.

This is my baseline scenario. In addition, I believe for its business model, a 8% dividend demanded is fair. Hence my target price for APTT is 13.1 Sg cents (25% upside for owning APTT).

Nov 2025 Portfolio Update: Encashing LendLease REIT into a 10% Dividend Yielder Trust

With Lendlease REIT shareholder unfriendly action to dilute existing unitholders at approx. 13.5% discount to finance a purchase, I have pared down my stake

Thought of Lendlease REIT  

While Lendlease REIT is pivoting to be a full Singapore REIT, the way it has resolved to do it is to purchase more shopping malls from the parent. Looking back Fraser Centrepoint Trust has done the same thing, but its share placements have always been only done at 1 times book value; and unitholders were given the opportunity to partake in it. 

Lendlease REIT in its anxious state to grow big has severely diluted existing unitholders and not offer a chance to existing unitholders to join the discount. Further, its purchase was fully financed by share placement. What this means is leverage will lower; but existing unitholders are diluted. The placement price was not good too and the banks supporting it wanted to earn the easy money out by not placing it at $0.62（ex dividend); this could have been done, and it is likely Lendlease REIT would have achieved its fund-raising objective. Both the REIT manager and Singapore banks were doing a great disservice to Lendlease Minority Unitholders which shows how terrible Singapore stock market is and something "MAS" current poster boy Chee Hong Tat should aim for- which is to stop retail investors from being easily diluted with legislative measures put in place to punish controlling shareholders.

As of now, Lendlease REIT only owns 70% of PLQ with a definite future that 30% more will be purchased. I do not know if it will be another share placement or leverage up to 42%; but as unitholders, it seems the REIT manager does not care about the minority at all. As a result, despite 90% of its portfolio now in Singapore shopping mall, there is a discount ascribed to the company where it now trades at 0.9 times book value. There is about 5-6% discount due to potential shareholder unfriendly action. 

With 0.9 times book value and 5.7% dividend yield, Lendlease REIT is ALMOST FULLY VALUED. Unless the REIT manager changes its action and state it in words via SGX announcement documents or AGM minutes, it is unlikely it will go to 0.96 book value (which is the true fair value like Fraser Centrepoint Trust, office properties are now valued at 0.6 times book value); hence I have decided to pare down my stake to buy other shares with higher upside. They are:

1. Asian Pay TV Trust-10% Dividend Yielder who should be chugging along at this rate nicely for 5 years to come
2. NTT DC REIT- a 7% dividend yielder
3. Nanofilm- A component precision manufacturing company with exposure to China and;
4. United Hampshire US REIT- Sustainable 8% Dividend Yielder.

Dividend, Dividend, Dividend

The reshuffling of fund, moving from fair value to undervalued dividend gems, will enhance my dividend inflow.

My US REITs are a great value bargain starting to prove their worth with improvement in cash flow.

Malaysia Ringgit Strengthening to below 3 Ringgit to 1 Sing Dollar

With growing confidence in Malaysia's economy and political environment, there is a forecast that Malaysia Ringgit (MYR) will fall below 4 to 1 USD and 3 to 1 SGD rate.

How True It is?

Economics Fundamental- Malaysia has been economically strong under the current government. With the trade war between USA and China, there has been an increase in foreign direct investments in Malaysia; in fact Malaysia has seen a growth in FDI. This has helped by the confidence in global investors have for Anwar economic and political reforms

Lower Interest Rates for Sovereign Debts- Malaysia's sovereign debt are mainly borrowed in USD, with declining rates in US interest rates, the interest serviced by Malaysia will reduce in time to come; coupled with PM Anwar's good economic reform, targeted subsidy reform which has reduced government spending, Malaysia's fiscal position has improved positively.

If PM Anwar continues to remain in power for 1 more term, it is definite Malaysia will progress economically and if this trajectory continues; 7 years from now, MYR will be at a level of 2.0 Ringgit to 1 Sing Dollar level; however if PM Anwar's coalition does not win the GE, it is likely MYR will just worsen to 3.5 or even 4 to 1 Sing dollar.

How Would it Benefit Stocks?

With the good political governance and strong economy of Malaysia; coupled with appreciating Ringgit, I am now setting sights on buying Malaysia stocks.

For starters, Riverstone with industry moat + exposure to Malaysia is a stock to look at. Another is Starhill Global REIT, which has a few upscale malls in KL, the strengthening Ringgit will improve the middle-income wealth and Starhill REIT will benefit. In fact, I am hoping Starhill will sell off its entire Singapore mall asset, deleverage by paying off debts and be a Malaysia focused retail REIT; it is likely to experience a 25% upside in share prices.

Portfolio Update: Achieved a $1 Million Stock Portfolio

Thanks to the better prospects of my US REITs and higher dividends, I have seen a run up in prices.

Aided by my decision to take up the Dividend Reinvestment Plan (DRP) for United Hampshire and Lendlease REIT, I have comfortably exceeded the $1 million mark. Besides the DRP, I have bought more United Hampshire and LINK REIT from the few sales in NTT DC REIT which has returned to near its US$1 IPO pricing and Far East Hospitality Trust. 

$60,000 Annual Dividend To be Achieved in 2026

With expectations of further rate cuts in USA, both United Hampshire and KORE looks set to report higher distributable income. This means higher dividends. 

For Utd Hampshire, it looks set to dish out 4.5 US cents in 2026, while KORE should be a 2 US cents yielder. 

For PRIME, it is now definitely safe. The company had recently announced private placement to obtain the cash to execute tenancy improvements for new leases it will be signing on. PRIME has guided to give at least 50% in distribution from next year. I estimate this means annual 1.8 US cents dividend when the new leases start to generate cash rent.

All these adds to a $60,000 annual dividend portfolio.

Alibaba

Alibaba has gained in share price and this has greatly aided me in securing a $1 million stock portfolio. I am still holding to my Alibaba shares. 

Alibaba is not just an e commerce stock, but one which has data centres, a suite of AI services; similar to the value proposition Amazon holds to USA (an e commerce and software services provider).

For Amazon, its price earnings has been at 30-34 times. As Alibaba holds the same value proposition. A 30 times price earnings is possible. At HKD$171, Alibaba's current P/E is 20, hence, further upside of 50% is where I target Alibaba to be worth (Target price: $250)

United Hampshire US REIT

Returns wise, since my challenge to property agents, United Hampshire REIT has provided 4 US cents capital gain + 4.1 US cents in dividend. That is a 18.0% returns in less than a year. 

For next year, the REIT is likely to give 4.5 US cents dividend, which makes it a 9% dividend yield on current price. I am expecting 9 US cents (capital gains+ dividend) at end of 2026 

I would stop tracking the dividend for this year because of DRP and premature granting of dividend by PRIME. Re-counting will be done from 1 Jan 2026.