Oct 28, 2018

Reporting is always on time and is very throrough in financials - though their spin on things is usually a little disheartening.  In one deal with them - Valencia - and it is a bit of a disaster.  The last several months of reporting has shown very significant negative variance in every single metric vs. proforma - revenue missing considerably, and opex way over budget - not a great recipe.  Investor distributions are now coming in short and were even suspended for a short period.  Yet, every month they say that occupancy is close to 100%, but then the following month, occupancy is 8-10% lower than previously reported.  If they can't cash flow at 92% occupancy, leaves me wondering what kind of management we have in place.