What is United Hampshire US REIT?
As Asia’s first U.S. grocery-anchored shopping center and self-storage REIT, United Hampshire US REIT focuses on investing in a diversified portfolio of stabilised income-producing Grocery & Necessity Properties and modern, climate-controlled Self-Storage Properties located in the U.S.
The tenants targeted by United Hampshire US REIT are tenants resilient to the impact of e-commerce, including but not limited to restaurants, home improvement stores, fitness centers, warehouse clubs and other uses with strong omni-channel platforms1.
As of 30 September 2019, United Hampshire US REIT has 18 Grocery & Necessity Properties and 4 Self-Storage Properties2 focused on densely populated and affluent Northeast markets of U.S. with limited supply.
- “Omni-channel platforms” means the utilisation of multiple distribution channels, both physical and digital to allow the retailer to be better positioned to engage with the customer. These channels include the physical store, websites, phones, e-mail offers, social media, and traditional advertisement methods (i.e. print media).
- Elizabeth Self-Storage was recently completed in early January 2020 and Perth Amboy Self-Storage is currently under development and is targeted to be completed by 2Q2020.
United Hampshire US REIT will actively manage its property portfolio with the objective of protecting, adding and creating value across its properties to drive organic growth. The REIT seeks to achieve portfolio growth through the acquisition of quality, income-producing properties that fit within its investment strategy to enhance the return to Unitholders. The REIT will also actively pursue opportunities for future income and capital growth, and enhanced portfolio diversification.
United Hampshire US REIT portfolio consists of grocery-anchored and self-storage properties that offer stable and sustainable cashflows. Consumption accounts for approximately two-thirds of U.S. GDP3 while consumer confidence remains near decade-highs4. Grocery and necessity-anchored shopping centers and self-storage have also been amongst the most recession resistant, cycle-agnostic, and stable sectors in the U.S.5. Same-store net operating income for self-storage has grown 64% faster than other sectors since 19956.
- U.S. Bureau of Labour Statistics; real gross domestic product by demand category.
- Independent Property Market Research Report; based on index of consumer sentiment.
- Independent Property Market Research Report; based on property price sensitivity to 1% change in GDP from 1998.
- Independent Property Market Research Report; based on self-storage same-store net operating income growth compared against inflation from 1995.
SGX counter : ODBU
Bloomberg ticker : UHU SP Equity
United Hampshire US REIT’s distribution policy is to distribute 100% of United Hampshire US REIT’s Annual Distributable Income for the period from Listing Date to the end of Projection Year 2021 (distributions to be declared in U.S. dollars). Thereafter, United Hampshire US REIT will distribute at least 90% of its Annual Distributable Income for each financial year on a semi-annual basis.
Distributions from United Hampshire US REIT to Unitholders will be declared in U.S. dollars. Each Unitholder will receive his distribution in Singapore dollars equivalent to the U.S. dollar distribution declared, unless he/she elects to receive the relevant distribution in U.S. dollars by submitting a “Distribution Election Notice” by the relevant cut-off date. CDP, the Manager or United Hampshire US REIT shall not be liable for any loss arising from the conversion of distributions payable to Unitholders from U.S. dollars to Singapore dollars.
Save for approved depository agents (acting as nominees of their customers), each Unitholder may elect to receive his/her entire distribution in Singapore dollars or U.S. dollars and shall not be able to elect to receive distributions in a combination of Singapore dollars and U.S. dollars.
United Hampshire US REIT’s distributions will be made on a semi-annual basis, with the amount calculated as at 30 June and 31 December of each year.
The first distribution, which will be in respect of the period from the Listing Date to 30 June 2020 (“First Distribution”), will be paid by the Manager on or before 30 September 2020.
Unitholders of United Hampshire US REIT and all other persons are prohibited from directly or indirectly owning in excess of 9.8% of the outstanding Units, subject to any increase or waiver pursuant to the terms of the Trust Deed and on the recommendation of the Manager.
Non-U.S. Unitholders are required to comply with certain documentation requirements in order to be exempted from U.S. federal withholding tax of 30% under the United States Internal Revenue Code of 1986, as amended (“IRC”), including under the United States Foreign Account Tax Compliance Act (“FATCA”).
Unitholders that are not U.S. Persons must establish their status for FATCA purposes and their eligibility for the U.S. Portfolio Interest Exemption by providing a properly completed and duly exercised applicable IRS Form W-8 and/or other certifications and information related to FATCA and the Portfolio Interest Exemption that is requested from time to time.
Unitholders that are “United States persons” for U.S. federal income tax purposes may be subject to different certification requirements. A Unitholder that is a “United States person” should contact the Unit Registrar to obtain the documents that must be submitted in order to be exempt from U.S. federal withholding, including under FATCA.
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Unitholders are required to submit the form individually for each trading account they hold:
- For United Hampshire US REIT units held via a custodian account with a broker, please submit the form to your broker.
- For United Hampshire US REIT units held via an individual CDP account, please mail hard copies of the form to our Unit Registrar, Boardroom Corporate & Advisory Services Pte. Ltd. at the address below.
- For United Hampshire US REIT units held with both a broker and individual CDP account, a dual submission is required. Please submit one copy to your broker and the other to our Unit Registrar, Boardroom Corporate & Advisory Services Pte. Ltd. at the address below.
Unitholders may also contact Boardroom, the Unit Registrar of United Hampshire US REIT at +65 6536 5355 for verification of their forms.
- Boardroom Corporate & Advisory Services Pte. Ltd.
- 50 Raffles Place #32-01
- Singapore Land Tower
- Singapore 048623
Unitholders should seek advice from their tax advisors regarding their ability to obtain a refund of U.S. withholding taxes.
Under the IRC, United Hampshire US REIT is required annually in March to report to the IRS, as well as to each non-U.S. Unitholder, the amount paid to each non-U.S. Unitholder during the previous year, the type of distribution, and the amount of withholding tax withheld. The report to the Unitholders is by way of a Form 1042-S. Copies of Form 1042-S are also filed with the IRS, allowing the IRS to verify if the correct amount of withholding was applied to the distributions by the REIT.
For most non-U.S. Unitholders, the information on Form 1042-S is for their information and there is no further action required on their part.
Where non-U.S. Unitholders are filing taxes in non-Singapore jurisdictions on the amount of U.S. income earned, the information may be important to the filing of their local non-Singapore tax returns. In these situations, Unitholders should seek advice from their tax advisors.