BUILD ENDURING CASH FLOWS
We strive to build and grow enduring, tax-efficient cash flows. Building durable, repetitive cash flows helps to preserve wealth and create the potential for meaningful capital appreciation.
Experience has shown us that carefully selected secondary and tertiary markets offer more attractive yields than primary markets, as well as comparatively strong growth prospects and superior downside protection.
Accordingly, we seek to identify smaller markets and assets that are overlooked by institutional capital, yet where economic conditions are favorable, and risk can be mitigated by buying assets at a discount to replacement cost and/or current value.
By combining research-driven, top-down analysis on market fundamentals with bottom-up sub-market knowledge from our property management & operations platform, we strive to identify assets that are most likely to outperform on a relative basis.
We reserve special enthusiasm for distressed assets in dislocated and mispriced secondary/tertiary markets that are showing clear patterns of recovery.
We align our interests with those of our partners by co-investing meaningfully in every asset we purchase. In addition, we leverage our vertically integrated investment, asset management and property management platform to help build value. By aligning our platform, capital and economic interests alongside those of our partners, we believe we can provide superior opportunities to achieve attractive financial returns.
We do not offer third party property management services to others. This optimizes our focus and resources, and it makes us fully accountable for the success of our investment decisions.
We add value by identifying assets that are under performing due to inexperienced ownership, poorly capitalized ownership, management fatigue and/or deferred maintenance, all of which can lead to distress. These conditions can create opportunities to purchase assets at prices not reflective of their true intrinsic value.
We maintain a firm commitment to pricing discipline when purchasing and financing these assets, and we carefully build strong, enduring cash flows over time by investing conservatively in accretive interior and exterior upgrades. In addition, we emphasize persistent and intensive management of each asset, which starts with strong support for enthusiastic and engaged on-site management staff.
By employing these strategies, we have been successful in generating above-market revenue growth, attractive cash yields, and meaningful capital appreciation.
We invest in the communities we serve. We do this by implementing extensive, multi-year capital improvement programs in each property, thereby improving the quality of local workforce housing opportunities and increasing local housing security. We also make local investments in support of the following three key themes:
- Health & Well-being.
We support these three key themes at the property level by organizing and leading local initiatives such as annual back-to-school supply drives and annual holiday toy drives for families in need .
At the corporate level, we give annually to local community organizations focused on these three key themes. Among others, we support GeneroCity 513 in Cincinnati, Junior Achievement in Southwest Ohio, and the Foundation for Youth in Indiana. We also give to our local YMCAs, YWCAs and JCCs. In addition, Piping Rock sponsors PRP Impact Partners, a 501c3 non-profit focused on housing and education.