ASX:URF

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

US Masters Residential Property Fund

Executive Summary

US Masters Residential Property Fund (Fund) was established in 2011 and is listed on the Australian Securities Exchange (URF.ASX).


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has US Masters Residential Property Fund's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: URF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

URF

-4.9%

AU REITs

-2.0%

AU Market


1 Year Return

-61.3%

URF

-25.7%

AU REITs

-12.3%

AU Market

Return vs Industry: URF underperformed the Australian REITs industry which returned -25.7% over the past year.

Return vs Market: URF underperformed the Australian Market which returned -12.3% over the past year.


Shareholder returns

URFIndustryMarket
7 Day0%-4.9%-2.0%
30 Day8.3%-7.8%-3.6%
90 Day27.5%4.6%11.9%
1 Year-61.3%-61.3%-22.5%-25.7%-8.7%-12.3%
3 Year-80.3%-82.3%12.2%-3.3%14.9%-0.4%
5 Year-80.9%-84.5%28.2%-0.3%28.3%0.6%

Price Volatility Vs. Market

How volatile is US Masters Residential Property Fund's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is US Masters Residential Property Fund undervalued compared to its fair value and its price relative to the market?

0.34x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: URF (A$0.33) is trading above our estimate of fair value (A$0.12)

Significantly Below Fair Value: URF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: URF is unprofitable, so we can't compare its PE Ratio to the AU REITs industry average.

PE vs Market: URF is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate URF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: URF is good value based on its PB Ratio (0.3x) compared to the AU REITs industry average (0.9x).


Next Steps

Future Growth

How is US Masters Residential Property Fund forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

0.8%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as US Masters Residential Property Fund has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has US Masters Residential Property Fund performed over the past 5 years?

-54.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: URF is currently unprofitable.

Growing Profit Margin: URF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: URF is unprofitable, and losses have increased over the past 5 years at a rate of -54% per year.

Accelerating Growth: Unable to compare URF's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: URF is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (3.3%).


Return on Equity

High ROE: URF has a negative Return on Equity (-27.55%), as it is currently unprofitable.


Next Steps

Financial Health

How is US Masters Residential Property Fund's financial position?


Financial Position Analysis

Short Term Liabilities: URF's short term assets (A$222.7M) exceed its short term liabilities (A$37.9M).

Long Term Liabilities: URF's short term assets (A$222.7M) do not cover its long term liabilities (A$697.3M).


Debt to Equity History and Analysis

Debt Level: URF's debt to equity ratio (119.9%) is considered high.

Reducing Debt: URF's debt to equity ratio has increased from 61.5% to 119.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: URF has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: URF has sufficient cash runway for 2.6 years if free cash flow continues to reduce at historical rates of 18.1% each year.


Next Steps

Dividend

What is US Masters Residential Property Fund current dividend yield, its reliability and sustainability?

6.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: URF's dividend (6.15%) is higher than the bottom 25% of dividend payers in the Australian market (2.53%).

High Dividend: URF's dividend (6.15%) is low compared to the top 25% of dividend payers in the Australian market (6.54%).


Stability and Growth of Payments

Stable Dividend: URF has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: URF has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: URF is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

US Masters Residential Property Fund has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Warwick Keneally
Non-Independent Executive Director of Walsh & Company Investments Limited3.17yrsno data0.0059% A$7.3k
Hannah Chan
Company Secretary of Walsh & Company Investments Limitedno datano datano data
Brian Disler
Co-Head & Co-CEO of US REIT0.92yrno datano data
Caroline Purtell
Company Secretary of Walsh & Company Investments Limited1.67yrsno datano data
Kevin McAvey
Co-Head & Co-CEO of US REIT0.92yrno datano data

0.9yrs

Average Tenure

Experienced Management: URF's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Warwick Keneally
Non-Independent Executive Director of Walsh & Company Investments Limited3.17yrsno data0.0059% A$7.3k
Peter Shear
Independent Non-Executive Director of Walsh & Company Investments Limited0.58yrno datano data
Stuart Robert Nisbett
Independent Non-Executive Chairman of Walsh & Company Investments Limited0.58yrno data0.0048% A$6.0k
Michael Adams
Non-Independent Non-Executive of Walsh & Company Investments Limited2yrsno datano data

1.3yrs

Average Tenure

Experienced Board: URF's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

US Masters Residential Property Fund's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: US Masters Residential Property Fund
  • Ticker: URF
  • Exchange: ASX
  • Founded: 2011
  • Industry: Residential REITs
  • Sector: Real Estate
  • Market Cap: AU$123.848m
  • Shares outstanding: 381.07m
  • Website: https://www.usmastersresidential.com.au

Location

  • US Masters Residential Property Fund
  • 100 Pacific Highway
  • Level 15
  • North Sydney
  • New South Wales
  • 2060
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
URFASX (Australian Securities Exchange)YesOrdinary UnitsAUAUDJul 2012
URFCHIA (Chi-X Australia)YesOrdinary UnitsAUAUDJul 2012
URFPAASX (Australian Securities Exchange)UNITS(COMP)AUAUDDec 2017

Biography

US Masters Residential Property Fund (Fund) was established in 2011 and is listed on the Australian Securities Exchange (URF.ASX). The Fund was established to give investors exposure to US residential property and is the largest Australian-listed property trust with a primary strategy of investing in freestanding and multi-tenant US residential property in the New York metropolitan area. The Fund is focused on seeking to achieve long-term returns through a combination of income from rental yields along with potential long-term capital growth. Since 2011, the Fund’s portfolio has grown to 1,171 housing units across 562 freestanding properties and 4 apartment buildings, with a gross asset value of approximately $1.4 billion (as at 31 March 2020). The Fund conducts all its New York metropolitan area residential investment through its controlled entity US Masters Residential Property (USA) Fund, a Maryland Real Estate Investment Trust (US REIT). A dedicated team of highly-skilled professionals based in New York manages every aspect of the real estate investment process – from acquiring the properties and rehabilitating the assets, to leasing the homes and ongoing tenant management. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 10:34
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.