US Masters Reports $60.79M Q3 Sales, Cuts Debt to $114.56M
US Masters Residential Property Group has surpassed its 2025 sales target with over US$200 million in property sales and significantly reduced its debt, while maintaining steady distributions to investors.
- Q3 sales of US$60.79 million across 40 properties
- Year-to-date sales reach US$179.78 million, exceeding US$200 million by October
- Global Atlantic Term Loan balance reduced to US$114.56 million
- Distributions total 11 cents per security in 2025
- Net Operating Income up 5.2% on a same-home basis
Strong Sales Momentum
US Masters Residential Property Group (URF) has reported a robust third quarter for 2025, closing sales on 40 properties worth US$60.79 million. This brings the year-to-date total to US$179.78 million across 126 properties, with sales surpassing US$200 million by the end of October; comfortably within the Group’s previously communicated target range of US$200 to US$225 million for the year.
The sales pipeline remains healthy at US$157.50 million, including properties under contract, on the market, or in attorney review, signaling continued momentum as the Group executes its portfolio reduction strategy.
Debt Reduction and Capital Management
Proceeds from the sales have been strategically deployed to reduce the Group’s senior debt. During the quarter, US Masters repaid US$35.47 million of its Global Atlantic Term Loan, lowering the outstanding balance to US$114.56 million as of 30 September 2025. Over the past twelve months, the Group has cut its debt by US$140.35 million, a significant deleveraging achievement ahead of the loan’s May 2026 maturity.
On the capital return front, the Group paid a 10 cent distribution in August, bringing total distributions for 2025 to 11 cents per stapled security. While no security buybacks occurred in the quarter, management continues to view buybacks as a flexible tool for returning capital, contingent on market pricing relative to net asset value.
Operational Performance and Portfolio Management
Operationally, the Group’s Net Operating Income (NOI) on a same-home basis rose 5.2% year-over-year to US$3.31 million for the 12 months ending September 2025. This growth reflects effective rental increases and vacancy management, as the Group strategically encourages vacancies to optimise sales conditions.
Portfolio occupancy stood at 68%, with a deliberate push to increase vacancy in preparation for sales. General and Administrative expenses remained stable at A$7.76 million for the nine months, reflecting consistent cost control despite internal restructuring.
Funds From Operations and Outlook
Despite these positives, the Group recorded a Funds From Operations (FFO) loss of A$30.7 million for the nine months to September 2025, primarily due to holding costs and transaction expenses related to the sales programme. Excluding one-off items, the adjusted FFO loss was A$7.3 million, a figure management anticipated as part of the portfolio wind-down.
Looking ahead, the Board remains focused on balancing capital management options; distributions, buybacks, and further debt repayments; as sales continue and the Group approaches the maturity of its debt facility.
Bottom Line?
With sales targets met and debt substantially pared, US Masters is poised to refine its capital return strategy amid ongoing portfolio sales.
Questions in the middle?
- How will US Masters balance distributions, buybacks, and debt repayment in 2026?
- What impact will continued vacancy management have on rental income and sales pricing?
- Can the Group sustain NOI growth as the portfolio shrinks further?
