# URF - US Masters Residential Property Fund



## System (23 July 2012)

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


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## So_Cynical (1 May 2020)

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.


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## Dona Ferentes (2 July 2020)

So_Cynical said:


> 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)


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## Dona Ferentes (4 September 2020)

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)_


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## Garpal Gumnut (4 September 2020)

Dona Ferentes said:


> 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.
> ...



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

gg


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## So_Cynical (4 September 2020)

Dona Ferentes said:


> 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..


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## So_Cynical (5 December 2020)

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/


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## So_Cynical (27 December 2020)

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.


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## qldfrog (27 December 2020)

So_Cynical said:


> 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?


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## InsvestoBoy (27 December 2020)

So_Cynical said:


> 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?


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## So_Cynical (27 December 2020)

InsvestoBoy said:


> 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.


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## Telamelo (21 April 2021)

*URF* breakout alert @ 0.285c +5.56% last 2 sessions big green candles as volume/momentum taken off!

daily 2yr chart shows a beautiful rounded bottom / potential parabolic move up commencing given recent volume/momentum kicking in imo

DYOR as always .. Cheers tela


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## Telamelo (21 April 2021)

URF now @ 0.295c +9.26%!  & not much left in the sell queue lol

Intrinsic value from my research/understanding says URF worth at least 0.53c so way undervalued & market seems to be waking up to this DYOR


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## Telamelo (21 April 2021)

URF strong close @ 0.29c +7.41% 
	

	
	
		
		

		
		
	


	




2 year daily price chart shows URF shaping up nicely after a rounding bottom / parabolic move up forming with recent big volume/momentum kicking in.

Super bullish chart that looks a treat imo

https://www.marketindex.com.au/asx/urf

https://asx.swingtradebot.com/equities/URF:ASX

DYOR .. Cheers tela


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## Telamelo (23 April 2021)

*URF* having a crack @ 0.30c +3.45%


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## finicky (23 April 2021)

Sure gives the appearance of a pennant forming after a high volume 'pole'. Sometimes wonder where you come up with these weird stocks.


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## So_Cynical (23 April 2021)

Another 3% today to close at 30, still a massive gap to NTA.


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## Telamelo (24 April 2021)

So_Cynical said:


> Another 3% today to close at 30, still a massive gap to NTA.



Spot on mate as post-tax net asset value (nav) recently stated/reported is 0.53c+ so plenty more upside you'd think left to run here yet imo 









						URF Share Technical Analysis | US Masters Residential Property Fund
					

Current Technical Analysis and interactive chart for $URF stock / shares. See the current trading strategy, trend(s), rating and buy and sell signals.




					asx.swingtradebot.com


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## Telamelo (25 April 2021)

So we should get another weekly NAV estimate update on Wednesday 28/04 correct? as looking forward to it


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## qldfrog (26 April 2021)

Funny stock: i made a discretionary entry and flopped months ago, then was picked up by my systems with much better outcome so far😁


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## Telamelo (26 April 2021)

qldfrog said:


> Funny stock: i made a discretionary entry and flopped months ago, then was picked up by my systems with much better outcome so far😁



Well done mate.. URF pre-market looking strong with 3.24M buy side vs only 670K sell side


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## Dona Ferentes (15 April 2022)

one annoyed investor, the Global Value Fund:

_It is disappointing that the most noteworthy development in the portfolio this month was a significant setback at US Masters Residential Property Fund (URF). Over the past few years, GVF has invested in multiple securities issued by this fund. This includes successful investments in the fund’s ASX-listed debt instruments, which we acquired at large discounts to par value, despite them being well covered by the fund’s New York and New Jersey residential property portfolio. These discounts, combined with a high rate of interest, provided GVF with a compelling return relative to the risk.  

Following the repayment of those debt instruments, which both reduced gearing and simplified the fund’s capital structure, GVF made a small investment into the convertible preference units (CPUs) and a small investment into the ordinary units. The basis for these investments was: _

_a deep discount to asset backing; _
_substantial evidence of one-by-one asset sales at or around book values over the past few years; _
_a shareholder base that wanted a permanent solution to the discount; and _
_multiple statements from the Responsible Entity (RE) that it was exploring ‘capital market opportunities.’  _
_On 28 March, URF announced it had conditionally entered into an agreement to sell almost the entire portfolio to a joint venture between two US real estate firms. Disappointingly, the sale price reflected a large discount of almost 20% to the gross appraisal values of these properties. This transaction would result in the fund’s CPU holders being repaid at par, but its ordinary unitholders receiving just AUD 0.22 per share. Unsurprisingly, URF shares fell 45% on the day of the announcement while CPUs rallied by 9.3%. GVF’s unrealised losses on URF ordinary units were therefore partly offset by gains in the CPUs. 

The deal remains subject to several conditions, most notably the approval of ordinary unitholders. Based on the feedback we have received so far, and given that it represents such a large discount to an asset-by-asset sale, we struggle to see the transaction being approved. Interestingly, the market is now also pricing the stock as though the transaction will not go ahead. At the time of writing, URF shares are up 21% month-to-date, and trading at an 18% premium to the stated value of the deal for unitholders. We have been actively engaged with other shareholders on the register and will be sure to keep investors updated on our activities when appropriate to do so. _


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## Dona Ferentes (26 May 2022)

So_Cynical said:


> Another 3% today to close at 30, still a massive gap to NTA.



no point in having a NTA if no-one wants to pay that (or anywhere near it)



> _URF had entered into a conditional Purchase and Sale Agreement for the sale of substantially all of URF’s 1-4 Family property portfolio. ....  This Purchase and Sale Agreement was executed on 25 March 2022 and was followed by a 60-day Examination Period ending 25 May 2022 (US time)._






> The Buyer has determined *not to proceed with the Transactio*n, and as such the agreement will be terminated.   The Fund has been advised that this termination was due to a perceived deterioration in market conditions by the Buyer, notably a markedly increased interest rate environment and broader economic uncertainty, and the Buyer was unwilling to proceed on the agreed terms.


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## Dona Ferentes (14 September 2022)

from a fund manager
.... _several core GVF holdings.... helped to unlock a significant amount of value during the month. One of the more notable of these was our holding in US Masters Residential Property Fund (URF), with the ordinary units up 22.6% over the month. Two pieces of good news underpinned the URF price move in August. 
First, the fund announced progress in its discussions with potential external managers – an initiative that would likely lead to further cost savings, especially as the portfolio shrinks in size. Further details of this were provided at the end of the month, with Brooksville and Pinnacle identified as the potential managers. While we await the full terms, we were encouraged by comments that remuneration will be geared towards maximising value as promptly as possible – providing a much-needed alignment of interests.  
Second, the fund announced a positive six-monthly revaluation of its underlying properties, with values of its 1-4 family properties up 3% on average, as extremely high rental growth more than offset the impact of higher interest rates on valuations_.  ....


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