The Fund seeks to provide investors with exposure to a diversified portfolio of US-based residential property assets with the potential for attractive long-term returns through a combination of capital growth and net rental income. The Fund is focused on the New York metropolitan area, specifically Brooklyn, Manhattan and Queens, New York and Hudson County, New Jersey. The Fund is currently the largest Australian-listed property trust with a primary strategy of investing in US residential property.
The Fund aims to deliver attractive returns to unitholders by:
- acquiring freestanding houses (typically one to four family dwellings) in select neighbourhoods throughout the Fund’s target investment area at attractive valuations
- restoring and renovating properties, where required, to the highest standard, adding value through in-house construction management capability
- maximising rental income by providing tenants with quality property management services.
Accompanying this strategy are investments (both directly and via joint ventures) in multi-family properties (typically 20 to 100 units) located in the Fund’s initial target investment area for freestanding houses. These properties generally fall below the size threshold for large institutional investors while remaining beyond the financial scope of individual investors or local groups. The Fund renovates the apartments and common areas, improves landscaping and upgrades building systems with the aim to generate attractive rental income and long-term capital growth.
Current portfolio composition – learn more
Investing in the betterment of the community
In addition to the Fund’s focus on investing in property and generating strong results for unitholders, the Fund is also committed to the betterment of the local neighbourhoods and communities in which it operates.
Reflecting this commitment, Dixon Advisory USA was awarded the 2014 Preservation Initiative Award and the 2016 Excellence in Preservation Award by the Jersey City Landmarks Conservancy for our efforts to renovate and preserve architecturally significant Jersey City properties, including those outside of historic districts.
ASX-listed unsecured notes, known as URF Notes I (URFHA.ASX) maturing on 24 December 2019, URF Notes II (URFHB.ASX) maturing on 24 December 2020 and URF Notes III (URFHC.ASX) maturing on 24 December 2021 (together referred to as Notes) provide the opportunity for investors to receive periodic interest payments. The Notes pay a quarterly interest payment of 7.75% per annum, denominated in Australian dollars. The Notes assist the Fund maintain a diversity in its funding sources, maturities and terms in order to optimise its capital structure.
Like all investments, an investment in the Notes is exposed to a number of risks, which may either individually, or in combination, materially and adversely affect the future operating and financial performance of the Issuer, its investment returns and value of an investment in the Notes. For further information about the risks of investing in the Notes see Section 3 of the Replacement Prospectus dated 12 December 2014 for URF Notes and Section 3 of the Prospectus dated 29 September 2015 for URF Notes II.
Like all investments, an investment in the Fund carries risks which may result in the loss of income or principal invested. In addition to the general risks of investing, specific risks associated with investing in the Fund include, but are not limited to, property market risk, taxation risk and foreign exchange risk. For further information about the risks of investing in the product see Section 5 of the PDS dated 22 August 2016.