Us Masters Residential Property Fund · ASX:URF
Us Masters Residential Property Fund — Investor Presentation (December 2014)
27 slides from Us Masters Residential Property Fund's investor presentation, Dec 9, 2014
Slide 1: For personal use only
For personal use only
Slide 2: URF Notes and Fund update
URF Notes and Fund update For personal use only Alan Dixon – CEO, Dixon Advisory USA David Orr – Executive Director, Dixon Advisory USA DECEMBER 2014 2
Slide 3: Disclaimer
Disclaimer For personal use only The information provided in this presentation is factual information and should not be considered personal advice. The presentation has been prepared without taking into account your objectives, financial situation or particular needs. Before acting on the informatio
Slide 4: Agenda
Agenda For personal use only 1 Business and investment overview 2 New York metro market conditions 3 Operational update 4 URF Notes overview 4
Slide 5: Business and Investment Overview
For personal use only BUSINESS AND INVESTMENT OVERVIEW
Slide 6: US Masters Residential Property Fund (URF)
US Masters Residential Property Fund (URF) For personal use only c.$566m real estate investment trust (REIT) focused on NYC metropolitan area single-family housing Invest in undervalued neighbourhoods experiencing rapid growth and gentrification − seeks to purchase at or below replacement cost
Slide 7: Globally unique investment
Globally unique investment For personal use only Only listed REIT globally that invests exclusively in NYC metro area residential housing − US$20 billion of institutional investment in rapidly growing single family rental (SFR) sector – all focused on Sun Belt and Midwest − URF remains only player
Slide 8: Investment portfolio
Investment portfolio For personal use only Core positions in many of the most sought after residential locations in the NYC metro area Property portfolio locations by value (30 June 2014) Manhattan/ Queens, Hudson 9% County Workforce, 20% Multi Family, 20% Hudson County Premium, 24% Brooklyn, 27% 8
Slide 9: Compelling fundamentals
Compelling fundamentals For personal use only US housing market – access to credit remains historically tight − Despite signs of housing recovery, harder to qualify for mortgage than when GFC began New York City – world’s premier global city − Chronically low inventory, improving economy, and un
Slide 10: Strong performance
Strong performance For personal use only 60% 50% 40% 30% 20% 10% 0% -10% 2012 2013 2014 Annualised total unitholder returns since inception in excess of 12% 10
Slide 11: Investing in the community
Investing in the community For personal use only Fund is committed to the betterment of local neighbourhoods and communities in which it operates Jersey City Landmarks Conservancy (JCLC) Awards − “to celebrate those who have saved parts of our community’s past for future generations to enjoy” −
Slide 12: New York Metro Market Conditions
For personal use only NEW YORK METRO MARKET CONDITIONS
Slide 13: 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 ($1tn+), equivalent to Australia Ranked most important global city in the world by Knight Frank & most competitive city in the world by The Economist Creatin
Slide 14: Supply severely constrained
Supply severely constrained For personal use only 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 Units Authorised by New Residential Buildings Permits Units Issued New Certificates of Occupancy Real estate development in
Slide 15: Exceptional growth outlook
Exceptional growth outlook For personal use only NYC economy is forecast to grow by more than any other major global city over the next 15 years Source: Knight Frank 15
Slide 16: Operational Update
For personal use only OPERATIONAL UPDATE
Slide 17: October 2011
October 2011 For personal use only 13 employees [Picture] Market capitalisation of A$70m1 33 properties owned Market focus: workforce properties Capabilities − Finance, accounting, reporting − Property management − Leasing − Acquisitions − Due diligence & Closing 1 31 October 2011 17
Slide 18: June 2013
June 2013 For personal use only 68 employees Market capitalisation of A$376m1 441 properties owned Market focus: workforce and premium Jersey City properties Capabilities added: − Dixon Projects – architecture & construction − Security team − Turnover team 1 30 June 2013 18
Slide 19: Current
Current For personal use only 110 employees Market capitalisation of A$566m1 545 properties owned Market focus: premium Jersey City & Brooklyn properties Capabilities added: − Legal department − Interior design department − Debt finance team 1 8 December 2014 19
Slide 20: Case study: Park Place, Crown Heights, Brooklyn
Case study For personal use only 568 Park Place, Crown Heights, Brooklyn A deteriorating facade to an updated black facade 20
Slide 21: Case study: Park Place, Crown Heights, Brooklyn
Case study For personal use only 568 Park Place, Crown Heights, Brooklyn A gutted & empty kitchen transformed into a modern sleek design 21
Slide 22: Case study: Park Place, Crown Heights, Brooklyn
Case study For personal use only 568 Park Place, Crown Heights, Brooklyn An unusable back yard to an entertaining space 22
Slide 23: URF Notes Overview
For personal use only URF NOTES OVERVIEW
Slide 24: URF notes key terms
URF notes key terms For personal use only Dixon Advisory & Superannuation Services Limited as responsible entity Issuer for the US Masters Residential Property Fund Structure ASX listed unsecured debt notes 7.75% fixed per annum, payable quarterly; first payment scheduled Interest rate for 31 March
Slide 25: Capital structure
Capital structure For personal use only Equity market A$566m1 Approximately 12% p.a total capitalisation unitholder returns since inception URF NOTES A$50 - $150m Interest rate 7.75% p.a Revolving facility US$75m Interest rate approximately 6% p.a (US$58m drawn) Term financing US$59m across 7 Intere
Slide 26: 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 gearing $50 million $100 million $150 million raising raising raising 29% 35% 39% 43% Significant sco
Slide 27: For personal use only
ae Residential & 2 Property Fund
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