Experienced. Invested. The RISE way of investing in Real Estate. - - PowerPoint PPT Presentation
Experienced. Invested. The RISE way of investing in Real Estate. DISCLAIMERS This communication is for information purposes only and is not, and under no circumstances is to be construed as, an invitation to make an investment in RISE
The RISE way of investing in Real Estate.
This communication is for information purposes only and is not, and under no circumstances is to be construed as, an invitation to make an investment in RISE Properties Trust. Risks.
RISE is a private Canadian real estate investment trust (“REIT”) focused on the acquisition of underperforming apartment properties on the west coast of the United States with initial investment in Seattle, Washington. RISE should be considered for your client’s portfolio for the following reasons:
15.67%
1 15.53%
PERFORMANCE TO DATE - 03/31/2017
10 859
PORTFOLIO SUMMARY
11.0% 3.93%
DEBT OVERVIEW
1 2 3
15.83% 1
Jun-16 Sep-12 Dec-12 Mar-13 Sep-15 Jun-15 Mar-15 Dec-14 Mar-14 Jun-13 Sep-13 Dec-13 Jun-14 Sep-14 $0.30 $0.35 $0.40 $0.45 $0.50 $0.55 $0.60 $0.65
Annualized Quarterly Distribution Per F-Class Unit1
Dec-15 Mar-16 $0.70 $0.75 $0.80 $0.85
1 Historic growth in the distributions to unit holders is provided for general illustrative purposes and may not be indicative of future growth.
Sep-16 Dec-16 $0.90 Mar-17 Jun-17
$0.88
(5.12%)
$0.40
Before: Northline- “Pool Area”
After: Northline- BBQ Amenity Space
Before: Bentley House- Amenity Space
After: Bentley House- Amenity Space
Before: Starboard- Kitchen
After: Starboard- Kitchen
RISE senior management has over 80 years experience. They pride themselves on an irrational pursuit of excellence and celebrate their complimentary skill sets.
KARI ANDERSON DAVE KIRZINGER GARY BENDER
Principal, 27+ years experience Principal, 25+ years experience V.P. Redevelopment, +17 years experience
Responsible for all property ACQUISITIONS/FINANCE. Received his MBA from Stanford University, held leadership positions at Trammell Crow, Avalon-Bay, Intrawest, Belkorp and MOSAIC. Responsible for all PROPERTY
has worked at Trammell Crow, Equity Residential, and Investco. She was the founding president
Association.
ROSE O’DELL
Principal, 10+ years experience
Responsible for all
worked for Indigo Real Estate and earned a Master’s in Business Administration and a Bachelor’s in Finance from Seattle University. Responsible for all
from Edmonds Community College with a degree in Construction Management. Worked at Archstone prior to joining RISE.
RISE’s management team has approximately $21.1 million invested in the REIT. This represents approximately 18.6% of the current NAV. Incentive is performance based - 20%
8% per annum as additional carried interest.
Apartments
lowest volatility
unprecedented rental demand in upcoming years. Best Markets
initial focus on Seattle, WA.
Long Term, Private Real Estate
therefore an open-ended fund.
Public Real Estate Pricing Versus Net Asset Value- Very Volatile
directly related to the real estate value.
Conservative
positioned for market opportunities as they present themselves.
Vertical Integration
can involve physical improvement, management improvements, etc. are best when executed internally with an experienced management team.
100 200 300 400 500 600 700 800 900 1000 1950s 1960s 1970s 1980s 1990s 2000s 2010-14
Average Annual U.S Change In Renter Households
(in thousands)
Source: Joint Center For Housing Studies At Harvard University The State of the Nation’s Housing | 2015
Residential Building Permits 1980-2016 - “Supply” Seattle Versus the United States 1980-2015 - “Demand”
1980-2016 2008-2016 Average Permits 22,202 17,054
Average Population Per Permit 141 223 +58% Average Annual Seattle USA “Extra” Growth Employment Growth 2.1% 1.3% +60% +460,000 jobs Population Growth 1.6% 1.0% +60% +760,000 people
Source: Puget Sound Economic Forecaster; Dick Conway and Doug Pedersen
growth.
tech centre for the United States, suggesting continued strong job growth.
No rent controls. Rental apartments can be converted to condominiums.
On average, over 4,000 new rental apartments per year.
highest returns and the lowest volatility.
Returns
HOTELS
10% 8% 6% 9% 7% 5% 9.70% 9.00% 8.70% 8.30% 8.00%
INDUSTRIAL RETAIL OFFICE
Volatility
HOTELS
12% 13% 11% 8% 6% 10% 9% 7% 8.50% 8.50% 9.40% 11.10% 12.50%
INDUSTRIAL RETAIL OFFICE
Source: National Council of Real Estate Investment Fiduciaries (NCREIF)- Research Committee Semi-Annual Research Webinar, February 22, 2012
Echo Boomer (Born in the 1980’s or 1990’s)
projected to peak in 2020 and will be equal in size to the Baby Boom (~80 million).
approximately 114 million households in the U.S., every 1% decline in home ownership is equal to 1.1 million units of additional rental demand.1
2004 2016 2008 2000
900,000 800,000 700,000 850,000 750,000 650,000 600,000
150,000 +
Management Team
distinct and compelling competitive advantage over other funds via its expertise, industry relationships and vertically integrated platform. Investment Strategy
best real estate markets with a conservative balance sheet and a vertically integrated platform. This patient, disciplined approach has delivered excellent historical returns and there is good reason to believe RISE can continue to outperform. RISE management believes the REIT is well positioned for strong, long term growth for the following reasons:
Price: $17.2039 CAD $12.9362 USD Redemptions & Valuations: Quarterly Minimum: 100 units RRSP, RRIF and TFSA eligible Management Fee: A Class: 2% F Class: 1% FundSERV Codes: A Class: RBS-203 (CAD) F Class: RBS-201 (CAD) A Class: RBS-207 (USD) F Class: RBS-205 (USD) Annual Trailer Fee: A Class: 1% F Class: N/A Subscription Agreement: MattB@RiseProperties.ca When a trade is submitted through FundSERV please send a copy of the signed Subscription Agreement to Matt Berg at mattb@riseproperties.ca.
For More Information Please Contact: Dave Kirzigner P 425.503.2389 E DaveK@riseproperties.ca