US Masters Residential Property Fund (URF) Q3 2024 earnings summary

Executive summary

• Achieved highest quarterly sales since early 2023, closing 30 properties for US$45 million in Q3 2024; year-to-date sales reached US$99.28 million across 61 transactions.

• Sales pipeline at quarter-end was US$148.3 million, supporting optimism to meet the US$150 million full-year sales target.

• Net Operating Income (NOI) on a same-home basis for the nine months to 30 September 2024 was US$11.2 million, up 9% from full-year 2023 due to strong rental growth.

• Unadjusted Funds From Operations (FFO) loss was A$17.0 million for the nine months; adjusted FFO loss (excluding disposal and one-off costs) was A$4.8 million.

• Appointed a fourth independent non-executive director to the Board post quarter-end.

Financial highlights

• Closed US$44.97 million in sales across 30 properties in Q3 2024; nine-month total sales were US$99.28 million across 61 properties.

• NOI for the last twelve months to 30 September 2024 was US$11.2 million, a 9% increase year-over-year.

• Pre-tax NAV at 30 September 2024 was A$0.60 per unit (A$0.54 post-tax).

• Portfolio at quarter-end comprised 383 properties valued at US$498.9 million.

Outlook and guidance

• Confident in achieving the US$150 million sales target for 2024, with US$52.34 million under contract at quarter-end.

• Expect continued FFO losses as the portfolio is sold down and properties are held vacant for sale.