Millennium Dallas, Dallas, TX
I’ve got a couple days in the office and then I’m off to visit our Cincinnati, Dayton, and Columbus properties. It’s been a little while so I’m excited to get back on the ground in Ohio. Phil Meyer, our VP Asset Management and BJ Haydon, Regional Manager will join me as we review the deals, discuss CAPEX projects, and keep the “bus” moving forward. Speaking of moving the “bus” forward, I just connected with a property management recruiter based in Columbus, OH who has great connections in that market as well as Cincinnati and Dayton. Right now it’s never been more challenging to hire qualified maintenance, renovation, and leasing folks. We’re pulling out all the stops to keep the team growing strong!
I’m very proud of our team and what they continue to accomplish here at REM. On the distribution front we just sent out our monthly installment of equity distributions and we’re up to $7.3MM on an annualized basis. Here’s a snapshot of some of our post-renovation deals that are stabilized and cash flowing:
And when it comes to cash flow cushion, it’s equally important to note that we’re at a portfolio wide debt service coverage ratio of 1.95. That means we have almost double the necessary cash flow to cover the debt cost across all the deals in the portfolio.
I also like to remember that we completed two full-cycle exits earlier this year on deals that we felt needed to go bye-bye.
I like to review deals on an annual basis to see if any of them fall into the 80/20 rule (spending 80% of our time on 20% of the profit). It keeps us focused on the winners!
We’re working on a second Atlanta deal and will have info by the end of this week for you! Looking forward to sharing details. More cash flow supported by the world’s busiest airport!
Our ground up development in San Antonio is making great progress. Last week they poured the first slab so we’re just days away from going vertical! I’ve got some pics and video that I need to cobble together and shoot out. We’re finalizing exterior finishes and they look sharp. We’re targeting an upscale modern farmhouse look with just enough “pop” to make it memorable. Our truss bid came in less than projections (good news) and concrete is way over budget (bad news but not surprising).
San Antonio is over 100% subscribed! Awesome deal in an awesome town! We’re excited to get this one across the finish line September 9. I was just there last week visiting with our lender and the new re-built units look great. They’ll be a nice addition to the overall curb appeal of the property. If you missed this one, please reach out so we can ensure you take a position in a future opportunity!