Real Estate Company & Portfolio Valuation
Providing insight into real estate values
We use Green Street’s proprietary net asset value (NAV) and warranted share price methodologies to value a variety of real estate entities. This quantitative and qualitative analysis identifies strengths and weaknesses of an entity or portfolio relative to the public REIT peer group. We provide added insight by comparing risk-adjusted returns to the broader equity and debt markets. Our group goes beyond the typical property appraisal to value the platform on a more comprehensive and strategic level.
We value an array of real estate entities:
- Non-traded REITs
- Private REITs
- Joint venture investments
- Real estate platforms / operating companies
- Direct investment vehicles
Real Estate Company & Portfolio Valuation Case Study
The Client: Private owner of high-quality portfolio
-
Property Sector
Industrial
-
Company Size
75 employees
-
Portfolio Size
$1.5+ billion
-
The Situation
The board of directors of a blue-chip private REIT sought an independent assessment of the company’s performance as a topic of discussion for its annual corporate strategy meeting. The objective was to get insight on the company's competitive position relative to the publicly traded peer group to help assess its strategic direction and evaluate senior management. The board was particularly interested in gaining a third-party perspective of management’s relative effectiveness as it sought to implement a more thoughtful, systematic approach to valuation and executive compensation.
-
Our Solution
For over 10 years, Green Street has provided the board of directors with an annual, customized review of all aspects of the company’s performance including:
- Property market update
- Portfolio performance and valuation
- Capital allocation track record
- Share valuation
- Positioning for future growth
- Balance sheet strength
Using a comparable set of publicly-traded REIT peers for an in-depth comparison, Green Street offers an independent perspective on the company’s absolute and relative performance. Green Street’s report provides input to the company's strategic goals, helps set parameters for executive compensation goals, and offers insight into the company’s relative position in the industry while simultaneously helping the board meet its fiduciary responsibilities to shareholders.
-
The Results
Green Street has provided this comprehensive analysis on an annual basis for many years, offering a valuable and insightful time series that allows this private entity to compare its track record with that of its public peers. Management and the board view Green Street as an extension of their team, utilizing Green Street’s research and professionals to enhance the company’s processes and strategic initiatives. This blue-chip, private REIT, with a top-notch management team has been enormously successful over the past decade thanks to its focused, disciplined approach toward long-term value creation.
