US Masters Residential Property Fund (URF) H1 2025 earnings summary

Executive summary

• 86 properties sold in H1 2025 for $119 million, with sales momentum continuing into August and year-to-date closings reaching $155.3 million, supporting a full-year target of $200–225 million.

• Portfolio appraisal for the half year ended 30 June 2025 resulted in a 2.84% (or $9.2 million) reduction in value, mainly from the New York premium segment.

• Focus remains on executing the sales program, returning capital to security holders, and maximizing value through prudent capital management.

• Distributions of $0.11 per stapled security paid year-to-date, with 2.8 million stapled securities repurchased.

• Reclassification of US operations to C-Corp and adoption of a formal plan of liquidation to be completed by 31 December 2028.

Financial highlights

• Portfolio value decreased by $9.2 million (2.84%) in H1 2025, with New York premium down 4.4%, New Jersey workforce down 1.2%, and New Jersey premium down 1.1%.

• Net operating income on a same home basis rose 8% to $4.9 million over the 12 months to 30 June, driven by rental growth on renewals.

• Funds from operations (FFO) loss of $19.7 million for H1 2025, or adjusted loss of $4.6 million after excluding one-off expenses and disposal costs.

• Pre-tax loss of $35.0 million for H1 2025, but post-tax profit of $4.8 million due to a significant reduction in deferred tax liability.

• General and administrative expenses were $5.6 million, or $5.35 million normalized, and remained stable across periods.

Outlook and guidance

• Full-year sales target of $200–225 million remains achievable, supported by a robust pipeline and recent sales activity.

• FFO expected to remain negative as the portfolio reduces, but focus is on maximizing revenue from held properties and cost management.

• Monitoring market conditions and buyer sentiment, especially in New York, due to political uncertainty and cooling demand.

• Portfolio is well positioned to support the sales program through the remainder of 2025.