THE Exetel Value Creation System
The faster we increase net operating income, the sooner our investors see returns on their equity. Our Value Creation System is a highly efficient method of repositioning properties to realize increases as quickly as possible, and to provide greater long-term certainty.
IDENTIFY KEY MARKETS
We seek out business-friendly locations that show growth of GDP and employment, which will lead to population growth and ultimately to increased demand on housing supply.
ACQUIRE STRATEGIC PROPERTIES
We target multifamily properties where we can physically increase the net operating income above and beyond natural appreciation. We typically acquire properties located close to major employment hubs and transit routes with unusually high vacancy rates that are poorly maintained and/or operated.
CAPITAL IMPROVEMENTS FROM DAY ONE
We call it The Exetel 30-Day Transformation, and it starts on Day One. From the moment of ownership, the difference is clear. We invest capital in accretive building upgrades, infrastructure improvements, and new amenities to improve the resident experience and command additional rental income.
UNPARALLELED OPERATIONS
Exetel Capital works closely with the best property managers in the industry to improve our properties, reduce costs, market the properties effectively, and normalize rent structures. Our industry-leading operations not only increase income and occupancy rates, but resident retention as well.
INCREASE VALUATION
Our modest capital investment generates materially accretive returns. Our track record shows the resulting increase to net operating income, using a conservative capitalization rate, can increase a property’s valuation equal to investors’ original equity.
SUPPLEMENTAL FINANCING
We leverage supplemental financing because our investors value certainty. Ensuring our loan terms allow for an annual appraisal to leverage improved NOI and property value, we increase the existing loan to return equity back to investors.
DIVEST
From acquisition to sale, our investment strategy typically has a three-to-five year horizon. Our investors have averaged 30% annualized returns (1) upon sale.
REPEAT
The Exetel Capital's Value Creation System is effective, scalable, and repeatable.
Exetel Capital calculates average annualized returns as follows: First: Annualized pre-tax returns for each sold property = [ (Total pre-tax return to limited partners expressed in %) / ((investment period expressed in days) / 365) ] Then: Average annualized pre-tax returns across all sold properties = [ (Total Annualized pre-tax returns for all sold properties) / (# of sold properties) ]
