Wafra can provide asset management services to debtors and lenders in the real estate industry. The function is not a duplication of management. Rather, as oversight manager, Wafra can be authorized by owners or lenders to monitor the operating efficiency and value of their assets when such expertise is not available in-house.
The Wafra team seeks to ensure that assets are properly supervised and well managed, and to create efficiencies and dollar savings. The following is a list of offered asset-management services:
Preliminary Financial Analysis
We conduct a desktop review of recent years’ financial operating results to identify trouble spots and seek to develop strategies for turning them into positives.
In-Depth Financial Review
We review the property’s accounting history in an effort to assure that financial reports – monthly income statements, balance sheets, accounts payable, accounts receivable, general ledger and trial balance – are done in an accurate and timely basis.
Management Operations Review
We conduct a thorough review of existing management to determine whether there exists a possibility of enhancing the profitability of the operation. This review includes an in-depth analysis of operating revenues and expenses, personnel utilization, whether revenues can be improved through aggressive marketing, and if expenses can be reduced through more efficient internal controls.
Market Position Analysis
A market study is conducted to determine if supply and demand coincide with the property’s marketing position and whether the property can improve its position through new management or an overall repositioning of the property. If required, the formulation of a preliminary marketing plan for the property can be established to achieve new goals.
At the conclusion of the market position analysis and the review of the historical financial operating data, we project future revenues and expenses and create a detailed plan of future projected net results before interest payments, amortization, or income taxes.
On-Sight Review/Renovation Strategies
Physical assets are reviewed to determine whether renovation is necessary, and what dollar investment may be required. Typically, a plan may be proposed that would either maintain the market niche presently occupied, or enhance the property to improve the image and market niche.
Marketing Plan Critique
After examining the marketing plan, we review the objectives and action strategies with a view towards maximizing the property’s potential. If we find deficiencies in the plan, we will assist in the reorientation of the marketing plan and goals.
Ongoing Management Review
Wafra works with the owner/borrower to establish a closer, more demanding relationship with the management/leasing company of the property.
Market and Feasibility
We determine overall market conditions specifically correlated to the subject property. This includes a financial analysis of current operations, review of the property marketing/leasing plan, and a determination of market position.