Dixon Advisory expects “no material impact” on the value of US residential portfolio following Hurricane Sandy

Dixon Advisory, the manager of the US Masters Residential Property Fund, does not expect storm damage from Hurricane Sandy to materially impact on the value of its portfolio of 249 rental properties in New Jersey and Brooklyn.

Yesterday, fund managing director Alan Dixon said low-lying properties in Jersey City, Bayonne and Hoboken had suffered damage as a result of Hurricane Sandy following inspections made by himself and other members of the fund's management team.

In an ASX statement, the fund said net asset value calculations on October 26 – prior to Hurricane Sandy making landfall in the New York Metropolitan area – was at $1.44 per share.

“An assessment of the impact of the storm on the portfolio is currently being undertaken," says the fund.

“While it is too early to precisely estimate the storm’s impact on the value of the portfolio, given the limited nature of the damage and the insurances carried by the fund, the responsible entity currently estimates there will be no material effect on the NTA.”

An announcement yesterday about damage to some properties in the portfolio did not impact on its share price, which is currently trading at $1.55, having traded in a range between $1.53 and $1.61 over October.

The ASX-listed fund bills itself as the first Australian fund to invest directly in US residential real estate with many of the investors being self-managed super funds.