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United Hampshire US REIT (SGX:ODBU) Financial Strength : 2 (As of Dec. 2023)


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What is United Hampshire US REIT Financial Strength?

United Hampshire US REIT has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

United Hampshire US REIT displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

United Hampshire US REIT's Interest Coverage for the quarter that ended in Dec. 2023 was 2.83. United Hampshire US REIT's debt to revenue ratio for the quarter that ended in Dec. 2023 was 4.79. As of today, United Hampshire US REIT's Altman Z-Score is 0.69.


Competitive Comparison of United Hampshire US REIT's Financial Strength

For the REIT - Retail subindustry, United Hampshire US REIT's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


United Hampshire US REIT's Financial Strength Distribution in the REITs Industry

For the REITs industry and Real Estate sector, United Hampshire US REIT's Financial Strength distribution charts can be found below:

* The bar in red indicates where United Hampshire US REIT's Financial Strength falls into.



United Hampshire US REIT Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

United Hampshire US REIT's Interest Expense for the months ended in Dec. 2023 was $-7.80 Mil. Its Operating Income for the months ended in Dec. 2023 was $22.04 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $323.51 Mil.

United Hampshire US REIT's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*22.044/-7.803
=2.83

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. United Hampshire US REIT interest coverage is 3.07, which is low.

2. Debt to revenue ratio. The lower, the better.

United Hampshire US REIT's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(21.975 + 323.513) / 72.202
=4.79

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

United Hampshire US REIT has a Z-score of 0.69, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.69 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


United Hampshire US REIT  (SGX:ODBU) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

United Hampshire US REIT has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


United Hampshire US REIT Financial Strength Related Terms

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United Hampshire US REIT (SGX:ODBU) Business Description

Traded in Other Exchanges
N/A
Address
80 Raffles Place, No. 28-21 UOB Plaza 2, Singapore, SGP, 048624
United Hampshire US REIT is a Singapore REIT investing in a diversified portfolio of stabilized income-producing grocery-anchored and necessity-based retail properties, and modern, climate-controlled self-storage facilities, located in the United States of America. The company's objectives are to provide unitholders with regular and stable distributions and to achieve long-term growth in distribution per unit and net asset value per unit while maintaining an appropriate capital structure. The group's reportable operating segments are Grocery and Necessity Properties, and Self-Storage Properties. The company generates the majority of its revenue from the Grocery and Necessity Properties segment.

United Hampshire US REIT (SGX:ODBU) Headlines

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