United Hampshire REIT demonstrated a positive performance in H1 2025 with increased DPU and distributable income. This positive trend is expected to continue with anticipated future rate cuts, which will further boost distributions. I think it’s an undiscovered gem, especially against a negative investor sentiment surrounding US REITs listed on SGX.

For the first half of 2025, United Hampshire’s performance showed some positive growth:

  • DPU increased by 4% year-over-year.

  • Distributable income increased by 2.4% year-over-year.

Excluding the effect of divestments, on a same-store basis, gross revenue and NPI increased by 2.6% and 2.4%, respectively.

It is notable that performance improved due to lower finance costs, resulting from reduced interest rates and borrowings. This occurred even before official Fed interest rate reductions, suggesting that real interest rates may already be decreasing despite the Fed’s stance.

Therefore there is a good chance that United Hampshire’s results are expected to improve further with an eventual official Fed rate decrease.

I had thought my substantial investment in United Hampshire REIT was risky enough, until I found a blog post of another investor who held an even larger amount. (Although I have slightly exceeded his holding recently, buying even more shares due to the positive earnings report.)

But while he is making money on his investment, I am still in the red, when measured on the price I paid. This also doesn’t account for the rapid depreciation of the USD since the start of 2025. Thus, it’s important to note that even if our investments are allocated similarly, one of us might be profiting while the other is not.

While US REITs on the SGX generally face negative investor sentiment, I find this particular counter appealing precisely because it is overlooked and undervalued - its current unpopularity can largely be attributed to its association with the poor performance of US office and data center REITs.

While the absence of price discovery suggests a potentially long wait for any capital gains, I’m content to be patient, especially as I’m consistently compensated for it. Perhaps this explains the psychology for someone else other than me hodling a sizable amount too … but hopefully we aren’t just a pair of 💎Diamond Hands 🤲🏻?