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.