US Masters Residential Property Fund (Fund) ASX Code: URF Q1 2020 Video Update
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30 April 2020
US Masters Residential Property Fund (Fund)
ASX Code: URF
Q1 2020 Video Update
The Fund has recorded a video update to accompany the Quarterly Report for the period 1 January 2020 to 31 March 2020. A copy of
the presentation and a link to the video update is below.
This update is available on the Fund’s website and investors who have elected to receive email updates from the Fund will also be
emailed a link to the video.
Please click here for the Quarterly video update.
For further information contact:
Investor Relations
Ph: 1300 027 055
E: URFInvestorRelations@usmrpf.com
US Masters Residential Property Fund is the first Australian-listed entity with the primary strategy of investing in the US residential property market. Its portfolio comprises freestanding and multi-
dwelling properties in the New York metropolitan area. 1
Level 15, 100 Pacific Highway, North Sydney, 2060 | www.usmastersresidential.com.au | urfinvestorrelations@usmrpf.com | T 1300 027 055 | F 1300 883 159
January – March 2020
Quarterly Report
April 2020Disclaimer
This presentation is prepared by the US REIT, and is authorised for release by Walsh & Company Investments Limited
(ACN 152 367 649 | AFSL 410 433) (Responsible Entity) as the Responsible Entity for the US Masters Residential
Property Fund (ARSN 150 256 161) (Fund) (ARSN 150 256 161). This presentation may contain general advice. Any
general advice provided has been prepared without taking into account your objectives, financial situation or needs.
Before acting on the advice, you should consider the appropriateness of the advice with regard to your objectives,
financial situation and needs. Past performance is not a reliable indicator of future performance. All figures in this
presentation are in AUD unless stated otherwise. This presentation may contain statements, opinions, projections,
forecasts and other material (forward-looking statements), based on various assumptions. Those assumptions may or
may not provide to be correct. The Investment Manager and its advisers (including all of their respective directors,
consultants and/or employees, related bodies corporate and the directors, shareholders, managers, employees or agents
of them) (Parties) do not make any representation as to the accuracy or likelihood of fulfilment of the forward-looking
statements or any of the assumptions upon which they are based. Actual results, performance or achievements may vary
materially from any projections and forward-looking statements and the assumptions on which those statements are
based. Readers are strongly cautioned not to place undue reliance on forward-looking statements, particularly in light of
the current economic climate and the significant volatility, uncertainty and disruption caused by the outbreak of COVID-19,
and the Parties assume no obligation to update that information.
3URF Rent Collection
Percentage of rent collected in the first 25 days of the month: 2020
100%
98% 96% 98%
90% 93%
80%
70%
60%
50%
40%
30%
20%
10%
0%
January February March April
Source: US REIT. Data as at 25 April 2020.
Note: Past performance is not a reliable indicator of future performance.
4Industry Peer Rent Collection
The National Multifamily Housing Council:
• 89% of apartment households made a full or partial rent payment by
19 April 2020.
American Homes 4 Rent:
• Approximately 86% of April rents collected as of 9 April 2020.
Source: National Multifamily Housing Council (NMHC), April 19, https://www.nmhc.org/research-insight/nmhc-rent-payment-tracker/
Source: American Homes 4 Rent, April 9, https://investors.ah4r.com/press-releases/press-release-details/2020/American-Homes-4-Rent-Provides-COVID-19-Business-
Update/default.aspx
51 - 4 Family Property Sales
$90
USD Millions
URF Notes II was repaid
$80 0.5 in full on 31 March 2020.
$70
US$33.4m Total expected sales to
32.9
$60 repay URF Notes III is
subject to change, noting
$50 that changes to asset
valuations and FX over
$40 the course of the
program will impact the
$30 required levels of sales.
$47
$20
$35 Transactions “under
$23 $26
$29
contract” or in “attorney
$10
$14 review” are likely, but not
$9 $10
$6 $7 guaranteed, to close.
$0
Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
Cumulative closed sales Under Contract Attorney Review
Source: US REIT. Data as at 31 March 2020.
Note: Past performance is not a reliable indicator of future performance
6Debt Management
Source: US REIT. Data as at 31 March 2020.
7Blended Cost of Interest
Due to the significant depreciation of the Australian-dollar (AUD) relative to the US-dollar (USD) over this
period, the value of the US-denominated debt has increased when measured in AUD terms.
While this causes the debt to appear larger in AUD, as the Fund generates USD revenue and is using this
for debt repayments the change in exchange rate has no impact at an operational level. The weakened
AUD makes it more cost effective to use USD to repay the remaining Australian-dollar denominated URF
Notes III.
Source: US REIT. Data as at 31 March 2020.
Note: *Floating rate based on 1 month USD LIBOR which was approximately 2.4%,1.76% and 0.99% at 30 June 2019, 31 December 2019 and 31 March 2020
respectively, AUD/USD spot rate of 0.702, 0.7021 and 0.6131 at 30 June 2019, 31 December 2019 and 31 March 2020 respectively. ^Excludes multi-family joint
venture level debt.
8Indicative Total Interest Expense
(A$Millions)
Interest costs have
continued to fall
throughout the quarter,
as a result of the
ongoing debt repayment
program, as well as the
reduction in benchmark
interest rates for the
Wells Fargo and
Centennial Bank loan
facilities, both of which
are variable rate loans.
.
Source: US REIT. Data as at 31 March 2020.
Note: AUD/USD spot rate of 0.702, 0.7021 and 0.6131 at 30 June 2019, 31 December 2019 and 31 March 2020 respectively.
9General and Administrative expenses
(A$Millions)
16.0
14.0
2.5
12.0
2.6 $9.5M to $10M
10.0 2.6
0.7
8.0 0.8
6.0
10.0
8.8
4.0 7.7 1.2
0.3
2.0
2.9
-
H1 2019 H2 2019 Q1 2020 2020 Total G&A Target (Per Half
Year)
US G&A Australian G&A Responsible Entity & Admin Fees Sublet Write Off Target
Source: US REIT. Data as at 31 March 2020.
Note: AUD/USD average rate of 0.7063, 0.6846 and 0.6582 for H1 2019, H2 2019 and Q1 2020 respectively. Original target for 2020 utilises the 31 December 2019 spot rate of
0.7021.
10Net Operating Income (NOI) Yield
The Fund has a target of exceeding a 3.25% portfolio NOI Yield as the sales process
continues, and under regular operating conditions we expect that the portfolio’s NOI Yield
will trend closer to this target over time.
Source: US REIT. Data as at 31 March 2020.
Note: 1) “Same-home” assets by segment will not match the total portfolio distribution, as it excludes assets held for sale or under construction. 2) “LTM” refers to Last 12
Months. 3) Past performance is not a reliable indicator of future performance.
11Funds from Operations (FFO)
Source: US REIT. Data as at 31 March 2020.
Note: 1) Note: AUD/USD average rate for Q1 2020 of 0.6582. 2) This analysis excludes non-cash items including items such as depreciation, foreign exchange
movements and changes in underlying asset values. URFPA distributions have been excluded from this analysis as they are considered equity distributions. 3) Past
performance is not a reliable indicator of future performance
12For further information
Investor Relations
URFInvestorRelations@usmrpf.com
1300 027 055
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