US Masters Residential Property Fund (URF) Q2 2024 earnings summary

Executive summary

• Recorded a total comprehensive loss of $8.1 million for the half-year ended 30 June 2024, reflecting a challenging operating environment and ongoing asset sales program.

• Internalisation of the Responsible Entity completed, with units in URF and URF II stapled on a one-for-one basis as of 26 June 2024, aligning management with unitholders' interests.

• Closed US$69.7 million in property sales YTD, with US$60.4 million under contract and US$35.2 million listed for sale; 12-month sales totaled US$86.27 million across 49 assets.

• Multifamily asset exit continued, with the Astoria, Queens asset sold post-balance date, releasing $3.7 million in equity.

• Recognised a decrement of $1.3 million on two remaining multifamily assets.

Financial highlights

• Total revenue for the half-year was $20.8 million, down 6% compared to the same period last year.

• Net operating loss increased to $17.9 million, compared to a $2.2 million loss in the prior year period.

• Adjusted FFO loss for H1 2024 was $3.3 million, up $2.3 million from H1 2023.

• Basic and diluted loss per stapled security was (2) cents, compared to (0.3) cents in the prior year.

• Net tangible assets per stapled security declined to $0.63 pre-tax and $0.57 post-tax, from $0.68 and $0.62 respectively a year ago.

Outlook and guidance

• Asset sales target for 2024 remains at US$150 million, with US$79.98 million currently under contract or on the market.

• Capital returns to unitholders will continue as asset sales progress, with a review of tax structure underway to optimise repatriation of proceeds.

• Management remains optimistic about achieving sales targets despite potential market uncertainty from the US presidential election.