Us Masters Residential Property Fund · ASX:URF
Us Masters Residential Property Fund — Investor Presentation (October 2015)
26 slides from Us Masters Residential Property Fund's investor presentation, Oct 1, 2015
Slide 1: US Masters Residential Property Fund
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Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Walsh & Company Investments Limited as Responsible Entity of US Masters Residential Property Fund (Fund). The information in this presentation is of a general nature and does not purport to be complete, nor does it contain all i
Slide 3: Contents
Contents For personal use only 1 Business and investment overview 2 New York metro market conditions 3 Investment Portfolio 4 URF Notes II overview 3
Slide 4: Business and Investment Overview
For personal use only BUSINESS AND INVESTMENT OVERVIEW
Slide 5: US Masters Residential Property Fund (URF)
US Masters Residential Property Fund (URF) For personal use only − Real estate investment trust (REIT), with $911 million of total assets, focused on NYC metropolitan area single-family housing − established and listed June 2011, moved to Australian Securities Exchange June 2012 − Significant scale,
Slide 6: NYC residential investment
NYC residential investment For personal use only Acquire, redevelop, lease NYC metro housing − All-in entry price at or below replacement cost − Proprietary deal sourcing and specialist construction capabilities − Target undervalued neighbourhoods experiencing rapid growth and gentrification − Focus
Slide 7: Strong unit holder returns
Strong unit holder returns For personal use only 2011 2012 2013 2014 2015 Annualised total unitholder returns since inception of ~13%1 1 At 22 September 2015 based on URF unit price of $2.20 7
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 − Jersey City Landmarks Conservancy Awards − Winner: Preservation Initiative Award for 2014 − “For [Dixon’s] mindful renovations of architecturally significant J
Slide 9: New York Metro Market Conditions
For personal use only NEW YORK METRO MARKET CONDITIONS
Slide 10: New York metro market overview
New York metro market overview For personal use only − Fastest growing US city, added as many people since 2010 as previous 10 years − GDP (~$1.3tn), almost equivalent to Australia − Ranked most important global city in the world by Knight Frank & most competitive city in the world by The Economist
Slide 11: Demand underpinned by growth
Demand underpinned by growth For personal use only NYC economy is forecast to grow by more than any other major global city over next 15 years1 − NYC economy growing at 6.8% over last 12 months − 2014 one of best jobs years on record − Diversified economy: Silicon Alley, Madison Avenue, Wall Street,
Slide 12: Supply remains constrained
Supply remains constrained For personal use only Development in NYC nearly ground to halt during crisis; while recovering, still historically low 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Units Authorised by Ne
Slide 13: Investment Portfolio
For personal use only INVESTMENT PORTFOLIO
Slide 14: Record rents in townhomes
Record rents in townhomes Renovation strategy that drives record rents For personal use only Crown Downtown Jersey City Hoboken Park Slope, Heights, Jersey City Heights US$11,995 Brooklyn Brooklyn US$9,995 US$4,495 US$15,995 US$9,995 Note: rental amounts are per month 14
Slide 15: Hancock Street, Brooklyn
196 Hancock Street, Brooklyn For personal use only − Built in late 1800’s by renowned architect Gilbert Alphonse Schellenger − Renovated and reconfigured into spectacular single family home at minimal cost Acquisition Cost US$2.1 million Renovation Cost US$357,521 Last Valuation US$3.25 million (30
Slide 16: Prospect Place, Brooklyn
37 Prospect Place, Brooklyn For personal use only − Outdated two-family home renovated into a stunning two-family home − Upgrades compliment original woodwork, fireplace mantles and inlay ceilings Acquisition Cost US$1.495 million Renovation Cost US$644,485 Last Valuation US$3.6 million (30 June 201
Slide 17: Gregory Avenue, Weehawken, NJ
454 Gregory Avenue, Weehawken, NJ For personal use only − Outdated two-family home with beautiful New York City views − Renovated with an open layout, juliette balconies and high end finishes Acquisition Cost US$0.585 million Renovation Cost US$614,050 Last Valuation US$1.4 million (30 June 2015) Cu
Slide 18: URF Notes II Overview
For personal use only URF NOTES II OVERVIEW
Slide 19: URF Notes II Key Terms
URF Notes II Key Terms For personal use only Walsh & Company Investments Limited as responsible entity for the US Masters Issuer Residential Property Fund Structure ASX listed unsecured debt notes 7.75% fixed per annum, payable quarterly; first payment scheduled Interest rate for 31 December 2015 Ma
Slide 20: Capital structure
Capital structure For personal use only Equity market A$628m1 Approximately 13%1 p.a total capitalisation unitholder returns since inception URF Notes A$150m Interest rate 7.75% p.a URF Notes II A$50 - $150m Interest rate 7.75% p.a Revolving facility US$75m across 2 Interest rate approximately 6% p.
Slide 21: Capital management
Capital management For personal use only Fund targets consolidated gearing ratio of 50% − Pro forma gearing comfortably within targets Pro Forma Pro Forma Pro Forma Current gearing gearing gearing gearing1 $50 million $100 million $150 million raising raising raising Gearing ratio 37% 40% 43% 46% Ge
Slide 22: Key Risks
Key Risks Holders of URF Notes II are subordinated and unsecured creditors and will effectively rank in an insolvency For personal use only Unsecured behind senior debt, behind unsecured creditors preferred by law, pari passu with other unsecured creditors Creditors including URF Notes and ahead of
Slide 23: Key Risks
Key Risks The Issuer has given undertakings to the URF Note II Trustee under the Trust Deed. A failure to comply with For personal use only Breach of Trust not these obligations is not an event of default. If the Issuer fails to comply with the obligations under the Trust an event of default Deed, t
Slide 24: Key Risks
Key Risks For personal use only Holder cannot Individual URF Notes II Noteholders cannot require redemption until after the URF Notes II Trustee fails to require redemption do so when it is obliged to do so Breach of URF may fail to meet covenants on existing or new debt facilities of URF, US REIT o
Slide 25: Offer Timetable
Offer Timetable For personal use only Lodgement of Prospectus with ASIC 29 September 2015 Expected open of Offer (9:00am Sydney time) 7 October 2015 Expected close of Offer (5:00pm Sydney time) 19 October 2015 Issue and allotment of URF Notes II 26 October 2015 Expected despatch of holding statement
Slide 26: Summary
Summary For personal use only − Fund is uniquely well-placed to capture benefits from improving NYC metro market − Portfolio is solid and expanding judiciously − Fund continues to create a premium product and add value through renovations − Expanding to proactively capture the investment potential i
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