Portfolio Management Engagement

The owner held fourteen properties across five counties, managed by four different firms on four different reporting standards. The owner could not tell which properties were performing and which were draining, because the numbers did not reconcile across the portfolio.

We surveyed the leases, the service contracts, the reserves, and the reporting across the fourteen properties. The survey found three properties with deferred capital that the reserve would not cover, two properties with leases below market by double digits, and one property whose reporting had not reconciled in six months.

We overlaid the portfolio on a single reporting standard, with the variance explained and the capital sequenced. The overlay showed the owner which properties to hold, which to release, and which to sell, and gave the lender a package that would stand up to an audit.

We brought the portfolio to a single standard within two quarters, sequenced the capital across the reserves, and reset the below market leases at renewal. The owner sold the two draining properties at numbers the new standard supported, and held the rest with the books reconciled every month. The lines met.

• 14 properties to one standard
• 3 deferred capital items sequenced
• 2 properties sold at supported numbers