Us Masters Residential Property Fund · ASX:URF
Us Masters Residential Property Fund — Debt Investor Presentation (January 2017)
23 slides from Us Masters Residential Property Fund's debt investor presentation, Jan 25, 2017
Slide 1: URF Notes III
For personal use only URF Notes III January 2017
Slide 2: Disclaimer
Disclaimer For personal use only IMPORTANT INFORMATION: Each URF Notes III will be issued by Walsh & Company Investments Limited (ACN 152 367 649, AFSL 410 433) in its capacity as the Responsible Entity for US Master Residential Property Fund (ARSN 150 256 161) (Fund) under a Prospectus lodged with
Slide 3: Agenda
Agenda page For personal use only 1 Business and investment overview 2 Investment portfolio 3 URF Notes III overview URF Notes III 3
Slide 4: Business and Investment Overview
For personal use only Business and Investment Overview URF Notes III 4
Slide 5: US Masters Residential Property Fund (URF)
US Masters Residential Property Fund (URF) For personal use only Real estate investment trust (REIT), with $1,1301 million of consolidated total assets, focused on NYC metropolitan area single-family housing established and listed June 2011, moved to Australian Securities Exchange June 2012 Po
Slide 6: NYC residential investment
NYC residential investment For personal use only Acquire, redevelop, lease NYC metro housing Quality houses acquired at or below replacement cost Proprietary deal sourcing and specialist construction capabilities Target undervalued neighbourhoods experiencing rapid growth and gentrification
Slide 7: Positioned for continued growth
Positioned for continued growth For personal use only Cumulative shareholder return (unit price) 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% 2011 2012 2013 2014 2015 2016 Annualised total unitholder returns since inception of 9.75%1 1 At 31 December 2016 – Unit price of $2.07, inclusive of reinvested di
Slide 8: Investing in the community
Investing in the community For personal use only Committed to the betterment of local neighbourhoods and communities in which we operate Highlights the unique capabilities of Dixon Project’s architectural design and project management teams Jersey City Landmarks Conservancy Awards Winner Pre
Slide 9: Investment Portfolio
For personal use only Investment Portfolio URF Notes III 9
Slide 10: Target investment area
Target investment area For personal use only The New York metropolitan area is the most densely populated area in the United States It is the largest metropolitan area in the US by both population and economic output Since the housing market lows of 2012, strength in the New York housing marke
Slide 11: Investment focus
Investment focus For personal use only Fund has targeted four distinct investment markets Multi-family: apartment blocks, typically 20-100 units, in both NJ and NY New Jersey (Hudson) workforce: middle income housing markets in Hudson County New Jersey (Hudson) premium: higher-end housing stock in s
Slide 12: Current portfolio
Current portfolio For personal use only Freestanding Portfolio1 Area Properties Value (US$million) New York Premium 143 383.7 New Jersey (Hudson) Premium 135 244.0 New Jersey (Hudson) Workforce 323 140.2 Total 601 767.9 Multi-family Portfolio1 Joint Venture Investments Units Value (US$million) Golde
Slide 13: Current portfolio cont.
Current portfolio cont. For personal use only Property distribution – by value1 Property status – by value1 1 At 31 December 2016. Numbers may not add due to rounding. Source: Walsh & Company URF Notes III 13
Slide 14: Case Study: Powers Street
Case Study: 211 Powers Street For personal use only Outdated three-family home, located on a quintessential East Williamsburg block, Brooklyn Renovation added refreshing finishes while maximising the number of bedrooms Acquisition Cost US$1.8 million (May 2016) Renovation Cost US$0.48 million La
Slide 15: Case Study: 37B Gautier Avenue
Case Study: 37B Gautier Avenue For personal use only Located in one of the most coveted parts of Journal Square, Jersey City Unit 2 received a new entry hall, flooring and paint job while Unit 1 was updated with new fixtures and paint completing a fresh finish Acquisition Cost US$240,000 (Novemb
Slide 16: Case Study: 1st Street
Case Study: 283 1st Street For personal use only A luxurious single-family townhome situated in Brooklyn just off Park Slope’s bustling commercial corridor Gut renovations feature marble mantels and ornate woodwork Acquisition Cost US$1.8 million (August 2013) Renovation Cost US$1.58 million Las
Slide 17: Overview
For personal use only URF Notes III Overview URF Notes III 17
Slide 18: Key terms
URF Notes III key terms For personal use only Issuer Walsh & Company Investments Limited as responsible entity for the US Masters Residential Property Fund Structure Unsecured debt notes. Issuer to apply for quotation on the ASX. Interest Rate 7.75% fixed per annum, payable quarterly; first payment
Slide 19: Capital structure
Capital structure For personal use only URF Level Equity market approx. A$709m1 Approximately 9.75%2 p.a. total capitalisation unitholder returns since inception URF Notes A$150m Interest rate 7.75% p.a. Maturity date of 24 December 2019 URF Notes II A$90.5m Interest rate 7.75% p.a. Maturity date of
Slide 20: Capital management
Capital management For personal use only Long-term target gearing level of approximately 50% Unaudited Unaudited Unaudited Unaudited Actual 30 pro forma pro forma pro forma pro forma June 2016 30 June $50 million $100 $150 (reviewed) 2016 Offer million million adjusted1 Offer Offer Leverage 49% 45%
Slide 21: Key investment risks
Key investment risks For personal use only A list of key risks set out in the prospectus in section 1.5 are outlined below Priority Risk - Subordinated and Unsecured Interest payment and Face Value Early Redemption by the Issuer Creditors Repayment risk No Individual right to Redeem Potential additi
Slide 22: Offer timetable
Offer timetable1 For personal use only Lodgement of Prospectus with ASIC 23 January 2017 Expected Offer Opening Date (9:00am Sydney time) 1 February 2017 Expected Offer Closing Date (5:00pm Sydney time) 13 February 2017 Issue and allotment of URF Notes III 20 February 2017 Trading of URF Notes III e
Slide 23: Summary
Summary For personal use only The Fund employs an integrated business model focused on acquisition and renovation Active portfolio and capital management Take advantage of current market conditions Long-term returns through rental yields and capital growth Applications under the Offer can be made us
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