EquityMultiple Asset Management Reporting Protocol

August 22, 2019
By Brian Vail

EquityMultiple takes an active approach in managing all investments on behalf of our investors and strongly believes in maintaining high-quality, transparent investor communications. Whether you’re new to our platform or an existing member, it’s important to understand our internal processes for tracking the progress of each investment and creating periodic reports. As detailed here, our Asset Management team actively monitors each investment from inception to realization through frequent and detailed analyses of asset performance and market trends. These analyses may include shifts in demand drivers, comparables analysis, new supply, and legislative or zoning changes. Additionally, we regularly engage with sponsors, maintaining an open line of communication and developing dynamic asset strategies to counter asset and market variables.

Reporting Protocols

In the interest of transparency, we would like to share EquityMultiple’s reporting protocols, with investors. As part of our partnership agreements, we typically require sponsors to report on a monthly or quarterly basis, depending on the investment.

Our asset managers utilize the following guidelines:

Monthly Reporting

  • Required for investments with strategies that inherently carry higher risk – ground-up development projects, capital-intensive renovations, or assets with significant underperformance vs. underwriting
  • Required from Sponsors 30 days after the end of each calendar month
  • Reporting frequency will moderate as the asset reaches stabilization or underperformance is substantially improved.

Quarterly Reporting

  • Required for investments involving low levels of value-add improvements or stabilized and cash-flowing assets
  • Required from Sponsors 30-45 days after the end of each quarter or 60 days after the end of the reporting year

Please note that EquityMultiple may require additional time to review if sponsor reports are submitted at the end of the reporting deadline or if discrepancies requiring clarification are found. In this event, EquityMultiple will keep investors informed as to when they should expect the reports.

Report Content

To view updates on your investment, visit the My Activity page within the EquityMultiple platform. Investors are also notified via email as soon as updates have been posted. EquityMultiple follows standard protocols for financial and operational reporting on each investment.

Financial Updates

  • Confidential Financial Statements – Income Statement and Balance Sheet; actual vs. budget results are also included
  • Construction cost spends vs. budget (ground-up development or extensive renovation projects)

Non-Financial Updates

  • Brief executive summary (major milestones, any issues, strategy, etc.)
  • Explanations regarding major variance from actual to budget
  • Work completed during the reporting period and future plans (if any)
  • Photographs (when available), Market update and competitive set commentaries (if available)

We welcome any questions or comments regarding the status of your investment. General status questions will be addressed during the next reporting period. Additionally, the Asset Management team may try to address specific questions on an ad hoc basis. However, if a member of the team cannot answer directly, EquityMultiple will work with the Sponsor to provide a response in a reasonable timeframe.

Please reach out to IR@equitymultiple.com for any inquiries.

Other General Notes

  • All financial statements and operational updates are considered strictly confidential and are not for distribution. Sharing non-public information in any way is a breach of EquityMultiple’s terms and services.
  • Direct contact with the Sponsor is prohibited (we do not share investor information with Sponsors). If you have any questions, please ask a member of the Investor Relations team, who will relay them to the Asset Management team.
  • The information contained in reports has been prepared by the Lender/Borrower/Sponsor or its agents. EquityMultiple does not make any representation or warranty about the truthfulness or accuracy of their statements or representations.

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