188 UNITED HAMPSHIRE US REIT Notes to the Financial Statements For the financial year ended 31 December 2025 11 LOANS AND BORROWINGS (CONT’D) Arundel Plaza Mortgage Loan The mortgage loan of US$22.0 million (“Arundel Plaza Mortgage Loan”), which is secured by, among others, a mortgage over Arundel Plaza. The Arundel Plaza Mortgage Loan 2 carries a fixed interest rate of 6.40% per annum, for which interest-only repayments will be made throughout the loan tenure followed by repayment of principal upon maturity. St. Lucie West Mortgage Loan Mortgage loan of US$40.0 million (“St. Lucie West Mortgage Loan”), which is secured by, among others, a mortgage over St. Lucie West and has a fixed interest rate of 3.42% per annum, for which interest-only repayments will be made for the first 60 months followed by repayment of interest and principal for the next 36 months thereafter based on a fixed amortisation schedule. The St. Lucie West Mortgage Loan includes representations, warranties and covenants by the borrower which are customary for U.S. mortgage loans. The St. Lucie West Mortgage Loan is subject to certain prohibitions and restrictions (including payment of prepayment fees and premiums) against prepayment prior to specified time frames. Upland Square Mortgage Loan This mortgage loan of US$41.0 million (“Upland Square Mortgage Loan”), is secured by, among others, a mortgage over Upland Square and has a fixed interest rate of 3.62% per annum, for which interest-only repayments will be made throughout the loan tenure followed by repayment of principal upon maturity period. The Upland Square Mortgage Loan includes representations, warranties and covenants by the borrower which are customary for U.S. mortgage loans. The Upland Square Mortgage Loan is subject to certain prohibitions and restrictions (including payment of prepayment fees and premiums) against prepayment prior to specified time frames. As at 31 December 2025, the Group has total gross loans and borrowings of US$311.4 million (2024: US$303.0 million) and US$141.0 million (2024: US$50.0 million) undrawn credit facilities to meet its future obligations. The Group has entered into interest rate swaps to hedge the floating rate SOFR Term Loan Facilities partially. 76.2% (2024: 73.6%) of the total gross borrowings are fixed rate loans or floating rate loans that have been hedged using floating-for-fixed interest rate swaps. The weighted average interest rate on loans and borrowings for the financial year was 5.46% (2024: 5.63%). Excluding upfront debt-related transaction costs and revolving credit facility, the year-to-date average interest rate is 5.01% (2024: 5.17%). Aggregate leverage, as defined in the Property Funds Appendix set out in CIS Code, as at 31 December 2025 was 38.6% (2024: 38.9%). Interest coverage ratio (“ICR”) as at 31 December 2025 was 2.4 times (2024: 2.5 times) in accordance with the Property Funds Appendix of the CIS Code. As at 31 December 2025, the Group was in a net current liabilities position of US$35.8 million, primarily attributable to the Upland Square Mortgage Loan, which matures in November 2026. The Group has secured a delayed-draw term loan of US$50 million that may be utilised to refinance the Upland Square Mortgage Loan. This delayed-draw term loan is available for utilisation up to November 2026, with drawdown subject solely to the borrower’s discretion. Accordingly, management has prepared the Group’s financial statements on a going concern basis.
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