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.

• Asset sales program remains the key focus, with $69.7 million in property sales closed YTD, $60.4 million under contract, and $35.2 million listed for sale.

• Stapled structure implemented in June 2024, internalising the Responsible Entity and aligning management with unitholders' interests.

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.

• Total comprehensive loss was $8.1 million, compared to a profit of $8.2 million in the prior year.

• 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 approximately US$150 million, with expectations of continued sales momentum in 2H 2024.

• 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.