Philosophy
Our Investment Philosophy
Fundamental Approach
- Current and future cash flow ultimately determines an asset’s value
- Low property basis, property location and asset quality are paramount in the screening process
- Rigorous due diligence
- Conservative cash flow projection assumptions
- Detailed assessment of possible downside scenarios
- Strategies that are successful irrespective of current market and economic cycles
Asset Level Value Creation
- Focus on deriving profit from executing business plans on a property-by-property basis – whether turning around a distressed asset or repositioning a property
- No reliance on momentum-based strategies to drive returns
Risk Management
- Risk-controlled, diversified portfolio is pursuant to specific investment guidelines intended to lower risk by limiting concentrations in certain sectors
- Targeting smaller, middle market transactions provides diversification in the number of investments ultimately acquired
Prudent Use of Leverage & Focus on Exit Strategies
- Focus on properly structuring the appropriate leverage on each investment is critical
- No reliance on excessive leverage or financial engineering to manufacture returns
- Acquire high-quality and well-located assets with appeal for a wide array of ultimate buyers
- Focus on projects with multiple exit strategies, including private one-off sales, portfolio sales within common asset classes or recapitalization