Who We Serve · REITs
Independent Investment Analysis for REITs
REIT capital allocation is a continuous exercise in comparing uses of capital: acquire, develop, redevelop, expand or sell. Independent analysis puts each option on the same evidentiary footing.
Scope
What this analysis is for
Public and non-traded REITs operate under steady scrutiny of earnings, leverage and net asset value. Acquisitions must be accretive, development pipelines must deliver on schedule, and dispositions must be timed to recycle capital efficiently. Each decision relies on market and asset-level assumptions.
Wert-Berater provides independent analysis on specific acquisitions, developments, redevelopments and expansions, and on the relative performance of existing assets. We help management and boards compare options on consistent assumptions.
Analytical framework
Capital allocation decisions we support
- 01
Acquisition
Market and operating evidence behind an acquisition's projected yield.
- 02
Development
Feasibility of pipeline projects, including lease-up and cost.
- 03
Repositioning and redevelopment
Return on capital programs for underperforming assets.
- 04
Expansion
Incremental demand and return for additions to existing properties.
- 05
Portfolio analysis
Relative performance, market exposure and candidates for recycling.
- 06
Asset monitoring
Variance against acquisition or development underwriting.
- 07
Disposition
Exit timing, buyer depth and net proceeds.
Evidence
Comparing uses of capital
Each line is tested against independent market and operating evidence, not accepted from the sponsor or seller model.
| Variable | What we test |
|---|---|
| Yield on cost | Development and redevelopment yield compared with acquisition cap rates in the same market. |
| Incremental return | Return on expansion or renovation capital measured on incremental NOI only. |
| Recycling | Which assets produce more value sold than held? |
| Market depth | Is there sufficient demand to absorb the portfolio's planned deliveries? |
Application
Typical engagements
Third-party market support
Independent market studies supporting acquisitions or development approvals.
Underperforming asset review
Repositioning, redevelopment or sale options compared.
Pipeline review
Feasibility of development pipeline projects as conditions change.
Portfolio recycling
Disposition candidates identified on evidence.
Work product
What you receive
- Market and feasibility studies for specific assets
- Capital allocation comparisons
- Portfolio analysis and recycling candidates
- Asset monitoring reports
Scope boundary. Wert-Berater provides independent analysis and is not an appraiser of record, investment adviser or broker for REIT transactions.
Analytical continuity
After the Investment: Independent Performance Monitoring
For a REIT, asset-level monitoring against original underwriting identifies which properties are earning their capital and which belong in the next recycling discussion.
The analytical relationship does not have to end when the feasibility study is delivered. Wert-Berater can continue monitoring the asset against the original underwriting assumptions, updating market conditions, testing coverage, identifying performance variances and maintaining a recurring analytical record.
-
Individual Asset Monitoring
- Revenue
- Expenses
- NOI
- DSCR
- Occupancy
- Market rents
- Competitive supply
- Value
- Original underwriting assumptions
-
Watchlist Monitoring
- DSCR deterioration
- NOI deterioration
- Occupancy
- Revenue
- Expenses
- Market conditions
- Collateral / value
- Stabilization
- Refinancing risk
-
Construction Monitoring
- Progress
- Budget
- Cost-to-complete
- Schedule
- Change orders
- Draws
- Remaining costs
- Lease-up
- Stabilization
-
Portfolio Monitoring
Most relevant here- Portfolio performance
- Risk
- Concentration
- Market exposure
- Annual review
- Re-underwriting
- Watchlist
- Portfolio-level trends
Discuss the analysis before you commit to it.
A briefing is a working conversation about the decision, the evidence available and the scope that would answer it. There is no obligation, and nothing is subscribed.