A private REIT with significant holdings in western and southern US employs multiple property management companies resulting in different lease management and accounting systems:

Data formats were different between systems   No uniformity of field names across systems.

Disparity in how fields used to enter data.

REIT’s processes had not been streamlined hampering collection efforts, inaccurate reporting to investors, and a constant friction within the REIT.

CHALLENGES

1. Multiple PMCs with different lease management & accounting systems

2. Inaccurate reporting to investors

3. Friction within the REIT

SOLUTION

Client partnered with NTrust to streamline and improve processes to achieve operational efficiencies, improved cash flow, and better investor reporting.

NTrust undertook a three-track approach to evaluate and correct the issues presented by the client:

Reviewed the actual data feeds supplied by the property managers; met with them to understand what the data represented within their system; created a data dictionary that allowed NTrust to map data from all property managers with the confidence that everyone was using the same data definitions.

Transformed data so it could be easily loaded into the REIT’s Yardi system; the platform used for creating all investor reports.

Published Training Document for new property managers at each property management company to ensure consistency.

NTrust also created a new process to ensure data flowing to investors is accurate.

BENEFITS

Unique “abstract once, repurpose as the deal progresses” methodology.

Process-drive Partner drives efficiencies.

40% Cost Savings compared to other consultants.

REMAAP USE CASES DEPLOYED

Data Clean Up

Investment Reporting

RESULTS

Cut reporting cycle by 30 days in year one: Cut investor reporting cycle from 45 to 15 days in the first year. In addition, eliminated need for filing revised reports because of the high accuracy of the work.

Increased FFO by 8% in first quarter and by 20% within first year: Better collections based on faster reconciliation and earlier billing of CAM and Property Taxes Fewer “Cash Calls” and happier investors!

REIT investors had daily updates of their cash positions and as a result reduced the number of ‘Cash Calls’ to investors by 20%. Aggregation and reporting done within 15 days of month closing compared to 45 days from a manual process.