Dividend sustainability is rarely a single number.
It rests on a combination of operational cash flow, balance sheet strength, and capital management – and how a company pulls these levers tends to matter more than any one quarter’s headline figure.
May 2026 brings a useful test for three under-the-radar Singapore-listed names.
United Overseas Insurance (SGX: U13) reports on 4 May, United Hampshire US REIT (SGX: ODBU) on 13 May, and Kimly Limited (SGX: 1D0) is expected to follow shortly after, having released its prior interim results on 14 May 2025.
Each draws on a different source of dividend support.
Here’s what to watch.
United Hampshire US REIT (SGX: ODBU), or UHREIT: Capital Recycling Does the Heavy Lifting
With assets under management (AUM) of US$774.3 million, UHREIT owns 20 grocery-anchored and necessity-based retail properties along with two self-storage facilities across eight US states.
For the full year ended 31 December 2025, gross revenue dipped 1.7% year on year (YoY) to US$72.0 million, while net property income (NPI) fell 1.7% in tandem to US$49.0 million.
Both declines reflected the absence of rental contributions from three properties divested in August 2024 and January 2025.
Even though the top-line numbers were a bit soft, UHREIT’s distributable income actually climbed 5.7% YoY to US$26.9 million.
This boost came from a mix of new leases kicking in, steady rent hikes, and the addition of the Dover Marketplace to the portfolio.
It also helped that it managed to trim down financing costs by paying off some debt and catching a break from the Fed’s rate cuts.
Distribution per unit (DPU) climbed 8.1% YoY to US$0.0439, marking the third consecutive period of DPU growth.
The capital recycling pipeline gives the distribution further runway.
Dover Marketplace, acquired for US$16.4 million in August 2025, carries a pro forma DPU uplift of 2.0%.
Wallingford Fair Shopping Center, acquired post year-end for US$21.4 million in January 2026, adds another 2.0% pro forma DPU uplift.
Aggregate leverage stood at a comfortable 38.6%, weighted average debt maturity at 3.4 years, with no refinancing requirement until February 2028.
Kimly Limited (SGX: 1D0): Net cash balance sheet underpins the payout
As one of Singapore’s largest traditional coffee shop operators, Kimly runs 89 food outlets, 180 food stalls, 11 restaurants, and four Tenderfresh kiosks, alongside central kitchens supplying its network.
For the fiscal year ended 30 September 2025 (FY2025), revenue rose 0.9% YoY to S$322.1 million.
This was supported by new coffee shop openings and higher cleaning services contracts, partially offset by the closure of underperforming food retail stalls.
Profit attributable to owners edged up 0.4% to S$33.3 million, with stronger gross margins cushioning higher finance costs from renewed leases.
Free cash flow tells a more nuanced story.
It declined to S$55.3 million from S$81.9 million a year ago, as capital expenditure rose sharply to S$30.0 million following the acquisitions of coffee shop properties at Block 204 Serangoon Central and 110 Yishun Ring Road.
This is investment rather than deterioration, but bears watching as these properties begin to contribute.
Operating cash flow remained robust at S$85.3 million.
The balance sheet is the dividend’s anchor.
Kimly held cash of S$68.1 million against debt of just S$5.0 million as at 30 September 2025, after fully repaying four bank loans during the year.
A final dividend of S$0.010 per share was proposed, bringing the total FY2025 dividend to S$0.020 per share.
While the business is still growing – highlighted by the recent S$11.8 million acquisition of a Haig Road coffee shop – management is keeping a close eye on industry challenges like rising costs and the ongoing manpower crunch.
United Overseas Insurance (SGX: U13): Strong balance sheet, watch the underwriting
United Overseas Insurance (UOI), a member of the UOB Group, provides property and general insurance across Singapore and the ASEAN region through its two main insurance funds – Singapore Insurance Fund and Offshore Insurance Fund.
For the full year ended 31 December 2025 (FY2025), the company saw insurance revenue edge up 1.7% to S$115.4 million, thanks to growth in retail, reinsurance, and new partnerships.
The bottom line told a different story, though.
Net insurance service and financial result dropped 21.5% to S$15.3 million as the company faced a spike in claims and higher management costs linked to its ongoing business transformation.
Profit after tax rose 8.4% YoY to S$32.3 million, supported by stronger non-underwriting income of S$16.6 million and a tax refund relating to prior assessments – items that may not recur at the same scale.
Total comprehensive income surged 72.6% to S$67.5 million, lifted by S$35.2 million in unrealised gains.
Meanwhile, net asset value per share grew 11.6% YoY to S$8.55.
The dividend draws strength from the balance sheet.
UOI held S$62.8 million in bank balances and fixed deposits, with no borrowings, contingent liabilities, or loan capital.
A total dividend of S$0.265 per share was declared for FY2025 – comprising a S$0.07 interim and a proposed S$0.195 final – representing a 15.2% increase YoY.
The watch item for the 1Q2026 result on 4 May is whether underwriting profitability shows signs of stabilising.
Get Smart: Three levers, one reporting window
Dividend sustainability tends to come from one of three places – operational cash flow, balance sheet strength, or capital management – and the three companies above lean on different combinations.
UHREIT’s growing DPU rests on capital recycling and refinancing tailwinds.
Kimly’s payout sits on a net cash balance sheet and operating cash flow.
UOI’s raised dividend is supported by a debt-free balance sheet that cushions a weaker underwriting result.
The May 2026 reporting season is a natural opportunity to check whether each lever is still doing its job.
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Disclosure: Calvina L. does not own any of the stocks mentioned. Chin Hui Leong contributed to the article and owns shares of UOI.
