US Masters Residential Property Fund ASX:URF Stock Report

Rockpoint Group, L.L.C. and Brooksville Company LLC entered into a conditional Purchase and Sale agreement to acquire 1-4 Family property portfolio from US Masters Residential Property Fund (ASX:URF) for $507 million.

Full year 2021 earnings: EPS in line with analyst expectations despite revenue beat

Full year 2021 results: EPS: AU$0.02 (up from AU$0.28 loss in FY 2020). Revenue: AU$39.4m (down 14% from FY 2020). Net income: AU$21.1m (up AU$129.1m from FY 2020). Profit margin: 54% (up from net loss in FY 2020). Revenue exceeded analyst estimates by 7.3%. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 29% per year, which means it is significantly lagging earnings.

First half 2021 earnings released: EPS AU$0.038 (vs AU$0.15 loss in 1H 2020)

The company reported a decent first half result with improved earnings and profit margins, although revenues were weaker. First half 2021 results: Revenue: AU$17.9m (down 19% from 1H 2020). Net income: AU$14.8m (up AU$70.6m from 1H 2020). Profit margin: 83% (up from net loss in 1H 2020). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has fallen by 39% per year, which means it is performing significantly worse than earnings.

Full year 2020 earnings released: AU$0.28 loss per share (vs AU$0.44 loss in FY 2019)

The company reported a decent full year result with reduced losses and improved control over expenses, although revenues were weaker. Full year 2020 results: Revenue: AU$47.7m (down 13% from FY 2019). Net loss: AU$95.5m (loss narrowed 43% from FY 2019). Over the last 3 years on average, earnings per share has fallen by 68% per year but the company’s share price has only fallen by 51% per year, which means it has not declined as severely as earnings.