Us Masters Residential Property Fund · ASX:URF
Us Masters Residential Property Fund — Investor Presentation (May 2015)
33 slides from Us Masters Residential Property Fund's investor presentation, May 6, 2015
Slide 1: US Masters Residential Property Fund Update
For personal use only US MASTERS RESIDENTIAL PROPERTY FUND UPDATE Alan Dixon - Managing Director & CEO David Orr - Executive Director
Slide 2: Disclaimer
Disclaimer For personal use only This presentation is not financial product advice and is intended to provide information only. It does not take into account your individual objectives, your individual objectives financial situation or needs. The information is taken from sources which are believed
Slide 3: Agenda
Agenda For personal use only 1 Seminar overview 2 The big picture 3 The rental market 4 Evolution of the Fund 5 Vision for the Fund 3
Slide 4: Seminar overview
For personal use only Seminar overview
Slide 5: Key conference speakers
Key conference speakers For personal use only Rebecca Symes Daniel Bailey Head of Legal & CEO, Dixon Projects Government Relations Laura Mooney Kirk Mitchell Associate Director Head Architect, Dixon Projects Priscilla Porter Steffen Ringelmann Director, Property Head of Interior Design, Management D
Slide 6: Key conference speakers
Key conference speakers For personal use only Steven Fulop Jonathan Sinex Mayor of Jersey City Investment Manager, US Select Private Opportunities Fund Matthew Eby Co-Founder & Managing Partner, Tengram Capital Partners 6
Slide 7: The big picture
For personal use only The big picture
Slide 8: How did an Australian advisory firm land here?
How did an Australian advisory firm land here? For personal use only Global outlook Five years of falls Overwhelming rental demand No over development in NY There is virtually no institutional competition in the New York metro townhouse rental market 8
Slide 9: Factors in investment strategy
Factors in investment strategy For personal use only - Solid economic base - Deep, well-established housing stock - Global compression of interest rates - Defensive nature of asset class - Global trend of foreigners investing in NYC real estate 9
Slide 10: Compelling fundamentals
Compelling fundamentals 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 EIU - Creating jobs at record
Slide 11: Identifying opportunity
Identifying opportunity For personal use only Real estate development in NYC nearly ground to a halt during crisis; while recovering, still historically low 11
Slide 12: Strong share price performance
Strong share price performance For personal use only Price AUD $2.50 $2.35 $2.20 $2.05 $1.90 $1.75 $1.60 $1.45 Figure as of 4/28/15 2012 2013 2014 2015 Annualised total unitholder returns since inception in excess of 14% 12
Slide 13: Total returns
Total returns For personal use only 2011 2012 2013 2014 2015 Annualised total unitholder returns since inception in excess of 14% 13
Slide 14: Investment allocation
Investment allocation For personal use only No. of No. of Value % of Area State properties units (US$m) portfolio Downtown Jersey City NJ 78 171 $106.2 18% Hoboken NJ 13 20 $24.6 4% Weehawken NJ 15 30 $14.7 2% Hudson County Workforce NJ 315 654 $105.0 17% Brooklyn NY 81 153 $165.9 28% Manhattan NY 1
Slide 15: The rental market
For personal use only The rental market
Slide 16: Why rent?
Why rent? …for the luxury tenant For personal use only 20 – 25% down-payment Early in career Corporate relocation Business owner New to the area Hassle-free living There is a deep market for high-end rentals 16
Slide 17: Record rents in townhomes
Record rents in townhomes For personal use only Downtown Jersey City Hoboken Park Slope, Crown Jersey City Heights, US$11,995 Brooklyn Heights, US$9,995 US$4,100 US$15,995 Brooklyn US$10,000 Note: rental amounts are per month 17
Slide 18: Evolution of the Fund
For personal use only Evolution of the Fund
Slide 19: Home price index timeline
Home price index timeline For personal use only Source: FindTheBest.com, Inc. ‘HPI’ – a broad measure of the movement of single-family house prices in the United States 19
Slide 20: Where to start?
Where to start? For personal use only Focus on acquisitions “Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results” - Warren Buffett 20
Slide 21: First investments
First investments For personal use only Greenville | Bayonne | West Bergen | The Heights | Journal Square Low acquisition costs Rent quickly Yield well Hudson County workforce 21
Slide 22: Hudson County workforce portfolio
Hudson County workforce portfolio For personal use only High-yield properties in gentrifying areas Book value Location Properties (US$m) Greenville 73 $17.2 Bayonne 57 $18.9 West Bergen 57 $17.1 Jersey City Heights 53 $25.4 Journal Square 34 $12.6 Other 41 $13.8 TOTAL 315 $105.0 22
Slide 23: Multi-family joint ventures
Multi-family joint ventures For personal use only Two opportunistic joint ventures Attractive financing Expedited use of capital Immediately cash flowing 23
Slide 24: Multi-family portfolio
Multi-family portfolio For personal use only Additional exposure to Hudson County and BK rental markets No. Ownership Value Multi-family portfolio Buildings of units % (US$m) Urban American 13 400 67.5% $45.96 Hudson County Excelsior Brooklyn 8 202 92.5% $44.00 Excelsior Hudson County 8 329 91.5% $3
Slide 25: Transition to premium NJ
Transition to premium NJ For personal use only Downtown Jersey City | Hoboken | Weehawken Classic architecture Exceptional location Excellent neighborhoods The Fund’s purchasing in Downtown, JC has coincided with the development boom in the area 25
Slide 26: Hudson County premium portfolio
Hudson County premium portfolio For personal use only Classic architecture in stylish neighborhoods Book value Location Properties ($US m) Downtown JC 78 $106.2 Hoboken 13 $24.6 Weehawken 16 $14.7 TOTAL 107 $145.5 26
Slide 27: Crossing the river
Crossing the river For personal use only Brownstone Brooklyn | Harlem | Queens | Lower Manhattan ‘Hyper-Gentrification’ Columbia expansion Opportunistic acquisitions “…‘New Brooklyn’ has become a global brand.” – New York Times 27
Slide 28: New York portfolio
New York portfolio For personal use only Undervalued assets in rapidly gentrifying neighbourhoods Book value Location Properties ($USm) MANHATTAN Brooklyn 84 $165.9 Manhattan QUEENS 17 $50.9 [Harlem] Queens 8 $11.3 BROOKLYN TOTAL 109 $228.1 28
Slide 29: Complete lifecycle management
Complete lifecycle management For personal use only Proprietary Premium ARCHITECTURE, deal flow DUE DILIGENCE, DESIGN design & technology LEGAL & CONSTRUCTION LEASING & CLOSINGS Portfolio Managers ACQUISITION & Alan Dixon – CEO, Dixon Advisory USA PROPERTY ANALYSIS Alex MacLachlan – CEO , Funds Mana
Slide 30: Vision for the Fund
For personal use only Vision for the Fund
Slide 31: Positive drivers
Positive drivers For personal use only Accelerating gentrification Relative valuation/yield compression Massive capital flows “New York real estate is the new Swiss bank account.” – Andrew Rice, New York Magazine 31
Slide 32: Summary
Summary For personal use only - Fund is uniquely well-placed to capture benefits from improving market - Portfolio is solid and expanding judiciously - Fund continues to create a premium product for the NYC metro area - The entity is expanding to proactively capture the investment potential in the m
Slide 33: Questions?
For personal use only 33 Questions?
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