Update on Structure Review and Sales Targets for 2025

US Masters Residential Property Group (ASX: URF) has announced the reclassification of the US Masters Residential Property Fund from a REIT to a taxable corporate structure effective 1 January 2025. This strategic move aims to optimize tax efficiency for repatriating proceeds from asset sales. As a C-Corp, historical losses can reduce taxable income, while liquidating dividends repatriated to Australia during the planned liquidation period will avoid withholding tax.

Under the previous REIT structure, gains repatriated to Australia incurred a 15% withholding tax, with limited offsets for historical losses. The reclassification allows the Group to fully utilize pre-2017 losses and post-2017 losses to offset 80% of current taxable income. The net deferred tax liability, reported as US$30.3 million on 30 June 2024, is expected to decrease to less than US$5 million, assuming all assets are sold within the liquidation period. For 2025, the Group has set a sales target of US$200–225 million, demonstrating its commitment to efficiently returning capital to investors. The plan aligns with the Group’s strategy to streamline operations and maximize returns.

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