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..