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

Executive summary

• Completed a full portfolio appraisal for HY1 2025, resulting in a 2.84% (US$9.2 million) reduction in value, mainly from the New York Premium segment, reflecting slower sales and market uncertainty.

• Sold 86 properties for US$119 million in H1 2025, with 47 sales worth US$70.92 million in Q2 and year-to-date sales reaching US$155.3 million by mid-August.

• Sales pipeline stood at US$176 million as of June 30, supporting a full-year target of US$200–225 million.

• Amendment to Tangible Net Worth Covenant enabled repatriation of over US$51 million to Australia, facilitating distributions and buybacks.

• Distributions of $0.11 per stapled security paid year-to-date, with 2.8 million securities repurchased for $1.1 million.

Financial highlights

• Portfolio value decreased by 2.84% (US$9.2 million) in HY1 2025, mainly from a 4.38% drop in the New York Premium segment.

• Same-home Net Operating Income (NOI) rose 8% year-over-year to US$4.9 million for the trailing 12 months to June 30, 2025.

• Funds from operations (FFO) loss of A$19.7 million for HY1 2025; adjusted FFO loss of A$4.6 million after one-off expenses.

• General and administrative expenses were A$5.6 million (A$5.35 million normalized), consistent with prior periods.

• Post-tax Net Asset Value (NAV) as of June 30, 2025, was $0.541 per stapled security.

Outlook and guidance

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

• Expect FFO to remain negative as the portfolio reduces, but focus is on maximizing revenue and managing costs.

• Directors will continue to assess optimal use of proceeds: distributions, buybacks, or further debt repayment.

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