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How To Improve Your Real Estate Investment Management Game – Forbes

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One of the most powerful benefits modern technology provides businesses with today is increased visibility into operations. In the real estate segment, deep insight into business performance is paramount to delivering better customer experiences.

One area of the real estate ecosystem that is, arguably, one of the more challenging branches is investment management. There are so many aspects of investment management that require constant monitoring, communication and tracking that it’s difficult to do it all effectively without the aid of technology to help managers stay organized.

Apart from benefitting investment managers and helping streamline their work, the insight captured by technology also gives investors themselves increased transparency around their portfolios.

Investment management is also ripe for growth. Our recent survey of investors found they are positive about the market, with almost half of respondents indicating they plan to increase their real estate investments and stay in the real estate investment game long-term. The winter is a good time to move forward with real estate investments because this time of year tends to be more of a buyer’s market, especially in multifamily, a popular asset class.

There is no better time for investment managers to get ahead of the season and consider how to use technology to strengthen and build lasting relationships with their investors, all of which lead to better business growth.

Be Investors’ One-Stop Shop

Real estate investing is a complex environment because there is a multitude of information to keep track of and to understand in order to make sound investment decisions. Investors rely heavily on their investment managers to provide them with consistent information across a variety of areas like new investment opportunities, property performance updates and analytics, information about the performance of the investment management company, and more.

Managers should use technology to provide this type of information more effectively and more frequently to investors. Historically, investment management required a significant amount of last-minute, manual paperwork to deliver relevant investor information, including fundraising documents, tax documents, statements, distribution calculations and contributions. In the investment world, there’s often an immediacy tied to providing financial information. Managers can employ technology to consistently keep track of financial documents, reducing risks of double entry and other human error and eliminating pressure on investment managers to pull together last-minute requests from investors. It also provides more assurance to investors that they will be able to acquire any information they need through digital records, accurately and concisely, and at any time. This leads to more confidence in investment managers and gives investment managers time back to focus on more strategic work.

Savvy investment managers track and pull every part of the investment cycle into digital, visually digestible, online material that also gives investors themselves direct access to information they need, in one location.

Grow And Strengthen Relationships

Communication plays a huge role in any successful business relationship. By using technology, investment managers can do this better with their investors, keeping operations more organized and transparent. Instead of constant follow-up with investors to get a better idea of where certain actions stand, use tech to be automatically updated on the latest completed activities, like when investors receive a signed document. Take as much of the guesswork and misunderstanding out of investment communications as possible to make for more efficient work.

Through streamlined processes and through working with effective investment managers, investors, naturally, will have more confidence in the investment management business handling their portfolios and fundraising. This kind of credibility and trust, in turn, gives investment management businesses the opportunity to raise even more capital from investors, helping overall business growth.

Understand Your Investors’ Needs

It’s important to understand that while technology will certainly improve operations, it isn’t the only important component of successful real estate investment management. Managers must understand their investor needs and keep those at the forefront of all their business decisions.

For example, managers need to be able to craft different investment strategies depending on the investor they’re servicing. It’s never going to be a one-size-fits-all approach. While some investors might be focused on the multifamily space, others might have a more mixed portfolio, which requires different strategies for different asset classes. It may even make sense for managers to try and specialize in a specific area of real estate, like development, to offer more sound advice on where it might make the most sense to invest in the future.

Additionally, as many investors invest nationwide, not just locally, it’s critical for managers to have in-depth knowledge of the local markets their investors play in, to help lead investors to better decisions and give them more information and background to work with when making those decisions.

While technology absolutely helps take investment managers to the next level, understanding individual investors and their needs, assets and strategies will help managers cross the finish line.

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More China coal investments overseas cancelled than commissioned since 2017

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More China-invested overseas coal-fired power capacity was cancelled than commissioned since 2017, research showed on Wednesday, highlighting the obstacles facing the industry as countries work to reduce carbon emissions.

The Centre for Research on Energy and Clean Air (CREA) said that the amount of capacity shelved or cancelled since 2017 was 4.5 times higher than the amount that went into construction over the period.

Coal-fired power is one of the biggest sources of climate-warming carbon dioxide emissions, and the wave of cancellations also reflects rising concerns about the sector’s long-term economic competitiveness.

Since 2016, the top 10 banks involved in global coal financing were all Chinese, and around 12% of all coal plants operating outside of China can be linked to Chinese banks, utilities, equipment manufacturers and construction firms, CREA said.

But although 80 gigawatts of China-backed capacity is still in the pipeline, many of the projects could face further setbacks as public opposition rises and financing becomes more difficult, it added.

China is currently drawing up policies that it says will allow it to bring greenhouse gas emissions to a peak by 2030 and to become carbon-neutral by 2060.

But it was responsible for more than half the world’s coal-fired power generation last year, and it will not start to cut coal consumption until 2026, President Xi Jinping said in April.

Environmental groups have called on China to stop financing coal-fired power entirely and to use the funds to invest in cleaner forms of energy, and there are already signs that it is cutting back on coal investments both at home and abroad.

Following rule changes implemented by the central bank earlier this year, “clean coal” is no longer eligible for green financing.

Industrial and Commercial Bank of China, the world’s biggest bank by assets and a major source of global coal financing, is also drawing up a “road map” to pull out of the sector, its chief economist Zhou Yueqiu said at the end of May.

 

(Reporting by David Stanway; Editing by Kenneth Maxwell)

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Bank of Montreal CEO sees growth in U.S. share of earnings

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Bank of Montreal expects its earnings contribution from the U.S. to keep growing, even without any mergers and acquisitions, driven by a much smaller market share than at home and nearly C$1 trillion ($823.38 billion) of assets, Chief Executive Officer Darryl White said on Monday.

“We do think we have plenty of scale,” and the ability to compete with both banks of similar as well as smaller size, White said at a Morgan Stanley conference, adding that the bank’s U.S. market share is between 1% and 5% based on the business line, versus 10% to 35% in Canada. “And we do it off the scale of our global balance sheet of C$950 billion.”

($1 = 1.2145 Canadian dollars)

 

(Reporting by Nichola Saminather; Editing by Leslie Adler)

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GameStop falls 27% on potential share sale

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Shares of GameStop Corp lost more than a quarter of their value on Thursday and other so-called meme stocks also declined in a sell-off that hit a broad range of names favored by retail investors.

The video game retailer’s shares closed down 27.16% at $220.39, their biggest one-day percentage loss in 11 weeks. The drop came a day after GameStop said in a quarterly report that it may sell up to 5 million new shares, sparking concerns of potential dilution for existing shareholders.

“The threat of dilution from the five million-share sale is the dagger in the hearts of GameStop shareholders,” said Jake Dollarhide, chief executive officer of Longbow Asset Management. “The meme trade is not working today, so logic for at least one day has returned.”

Soaring rallies in the shares of GameStop and AMC Entertainment Holdings over the past month have helped reinvigorate the meme stock frenzy that began earlier this year and fueled big moves in a fresh crop of names popular with investors on forums such as Reddit’s WallStreetBets.

Many of those names traded lower on Thursday, with shares of Clover Health Investments Corp down 15.2%, burger chain Wendy’s falling 3.1% and prison operator Geo Group Inc, one of the more recently minted meme stocks, down nearly 20% after surging more than 38% on Wednesday. AMC shares were off more than 13%.

Worries that other companies could leverage recent stock price gains by announcing share sales may be rippling out to the broader meme stock universe, said Jack Ablin, chief investment officer at Cresset Capital.

AMC last week took advantage of a 400% surge in its share price since mid-May to announce a pair of stock offerings.

“It appears that other companies, like GameStop, are hoping to follow AMC’s lead by issuing shares and otherwise profit from the meme stocks run-up,” Ablin said. “Investors are taking a dim view of that strategy.”

Wedbush Securities on Thursday raised its price target on GameStop to $50, from $39. GameStop will likely sell all 5 million new shares but that amount only represents a “modest” dilution of 7%, Wedbush analysts wrote.

GameStop on Wednesday reported stronger-than-expected earnings, and named the former head of Amazon.com Inc’s Australian business as its chief executive officer.

GameStop’s shares rallied more than 1,600% in January when a surge of buying forced bearish investors to unwind their bets in a phenomenon known as a short squeeze.

The company on Wednesday said the U.S. Securities and Exchange Commission had requested documents and information related to an investigation into that trading.

In the past two weeks, the so-called “meme stocks” have received $1.27 billion of retail inflows, Vanda Research said on Wednesday, matching their January peak.

 

(Reporting by Aaron Saldanha and Sagarika Jaisinghani in Bengaluru and Sinead Carew in New York; Additional reporting by Ira Iosebashvili; Editing by Sriraj Kalluvila, Shounak Dasgupta, Jonathan Oatis and Nick Zieminski)

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