US Masters Residential Property Group aims to divest its entire portfolio by the end of 2026, signalling an end to its operations. The group will prepare 2025 financials on a non-going concern basis, reflecting this strategic wind-down.
- Target to sell all remaining properties by end of 2026
- Potential delays into 2027 due to regulatory and tenant issues
- Financial statements for 2025 prepared on a non-going concern basis
- Investment properties remeasured to net realisable value including selling costs
- Group plans to cease operations after asset sales completion
Strategic Sell-Off Targets Completion by Year-End 2026
US Masters Residential Property Group has announced an ambitious target to sell all remaining properties in its portfolio across the New York Premium, New Jersey Premium, and New Jersey Workforce segments by the close of 2026. This move marks a decisive step in the group’s ongoing sales programme, which began in 2023, aimed at returning capital to securityholders efficiently.
While the goal is clear, the group acknowledges that several external factors could delay some sales into 2027. These include regulatory approvals, tenant cooperation, buyer delays or defaults, and unforeseen property-specific issues. The board, alongside Brooksville and appointed brokers, has conducted a thorough review to identify and mitigate potential saleability challenges, with only a limited number of properties currently flagged for concern.
Financial Reporting Reflects Wind-Down Strategy
In line with the planned cessation of operations following the asset sell-off, US Masters will prepare its financial statements for the year ending 31 December 2025 on a non-going concern basis. This accounting treatment means the group’s investment properties will be remeasured to their net realisable value, factoring in expected selling costs, which typically amount to around 7.25% of the gross sales price.
The group is finalising its half-yearly property portfolio valuation, which, combined with these adjustments, will be disclosed in the full-year financial report expected in late February 2026. This report will provide investors with a clearer picture of the portfolio’s value as the group progresses through its sell-down.
Implications for Investors and Market Position
The announcement underscores US Masters’ commitment to an orderly wind-down of its operations, following a tax restructure completed in January 2025. For investors, this signals a transition phase where capital return becomes the primary focus rather than ongoing property management or acquisition.
While the sell-off target is ambitious, the group’s transparency about potential delays and challenges reflects a pragmatic approach to managing expectations. The market will be watching closely as the sales programme unfolds, particularly given the complexities inherent in disposing of a diverse portfolio across multiple jurisdictions.
Bottom Line?
US Masters’ 2026 sell-off target sets the stage for a definitive end to its operations, with investor returns now front and centre.
Questions in the middle?
- Which properties are most at risk of delayed sales beyond 2026?
- How will the non-going concern accounting impact investor distributions?
- What are the broader market implications of US Masters exiting the residential property sector?