URF - US Masters Residential Property Fund

[System]

The US Masters Residential Property Fund has been established to give investors the opportunity to gain exposure to a diversified portfolio of US-based residential property assets.

http://www.usmastersresidential.com.au

 

[So_Cynical]

Been hammered for more than a year now, first it was slightly dodgy management and now the COVID crisis, All URF's assets are in the greater New York area thus have been under a little pressure lately.

NAV on paper is at least 420% above the traded price, but realistically should be a little lower, still a bargain at the price.

 

[Dona Ferentes]

Been hammered for more than a year now, first it was slightly dodgy management and now the COVID crisis, All URF's assets are in the greater New York area thus have been under a little pressure lately.

NAV on paper is at least 420% above the traded price, but realistically should be a little lower, still a bargain at the price.

hammered for 5 years!!

and today, Alan Dixon has stepped down from the board of wealth manager Evans Dixon Group (still owns 17% of ED1). He resigned as CEO of Evans Dixon last year to concentrate on URF but had left all executive roles by Oct.

(not for me)

 

[Dona Ferentes]

The corporate regulator has started civil court proceedings in the Federal Court against Dixon Advisory, alleging it failed to act in its clients' best interests and provide appropriate advice.

ASIC said the actions related to financial advice given to eight sample clients who were advised to invest in the US Masters Residential Property Fund, or URF, and URF related products.
ASIC alleges there were a total of 51 separate instances of financial advice provided to the eight clients, which resulted in two or more contraventions of best interest duties under the Corporations Act.

The maximum civil penalty against Dixon is $1 million for contraventions prior to March 2019 and $10.5 million after that date.

Since inception:

(Alan Dixon trousered a few mill < $17.6mill> when he sold his EAF holding and left the register in Aug)

 

[Garpal Gumnut]

The corporate regulator has started civil court proceedings in the Federal Court against Dixon Advisory, alleging it failed to act in its clients' best interests and provide appropriate advice.

ASIC said the actions related to financial advice given to eight sample clients who were advised to invest in the US Masters Residential Property Fund, or URF, and URF related products.
ASIC alleges there were a total of 51 separate instances of financial advice provided to the eight clients, which resulted in two or more contraventions of best interest duties under the Corporations Act.

The maximum civil penalty against Dixon is $1 million for contraventions prior to March 2019 and $10.5 million after that date.

Since inception:
View attachment 108652

(Alan Dixon trousered a few mill < $17.6mill> when he sold his EAF holding and left the register in Aug)

I looked at this when the market tanked earlier this year and none of this is a surprise.

gg

 

[So_Cynical]

The corporate regulator has started civil court proceedings in the Federal Court against Dixon Advisory

And the above has pretty much nothing to do with URF, it's still a Dixon fund but managed by a new team with a
much cheaper fee structure, the legal action is over stuff that happened before with the manager not the Fund.

ED1 is the managers ticker..

 

[So_Cynical]

Video update page below, at least the new managers are keeping the holders well informed, the new 430M loan has
helped the SP, old debt will be paid out and some more of the higher interest notes paid out, things on the improve.

https://www.usmastersresidential.com.au/our-webinars/

 

[So_Cynical]

URF my top pick for the 2021 tipping comp, mostly because the share price (22c) is still very subdued and back to the old trend after the recent bounce thanks to the debt refinance, share price still way way under the NTA of 71c ~ New York will bounce back.

 

[qldfrog]

URF my top pick for the 2021 tipping comp, mostly because the share price (22c) is still very subdued and back to the old trend after the recent bounce thanks to the debt refinance, share price still way way under the NTA of 71c ~ New York will bounce back.

Was interested a while back, but i think their target is actually wrong.
They were targetting areas which are being hit by the move out of big cities following covid19.
Sure,with money printing real estate nominal price may go up or at least not fall, but i suspect the value of their assets bank is actually declining in real term.and by the time they react,it could be too late.any thought?

 

[InsvestoBoy]

URF my top pick for the 2021 tipping comp, mostly because the share price (22c) is still very subdued and back to the old trend after the recent bounce thanks to the debt refinance, share price still way way under the NTA of 71c ~ New York will bounce back.

I've always been interested in this, since it is (AFAIK) the only residential property fund on the ASX (correct me if I'm wrong and there are others please!).

But it was really a botched opportunity by the old team.

NTA mean reversion is a nice idea but it's not like a LIC holding liquid assets, they would not get the NTA if they want to sell the portfolio and return cash to unit holders. So to me the question is just about distributions. According to https://www.usmastersresidential.com.au/investor-centre/ they haven't paid one since mid 2019.

Do you have any thoughts when distributions (the lifeblood of a REIT!) might return?

 

[So_Cynical]

Do you have any thoughts when distributions (the lifeblood of a REIT!) might return?

Some time in 21 would be good time to start distributions again - the fund has been very busy over the last 12 months paying out 2 of the 3 hybrid (bond) holders, the hybrids were/are AUD denominated and somewhat high interest 7.75% ~ they refinanced with USD at 4 and 5% so using the cheap money to buy out the expensive bond holders seems the smart thing to do.