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Market Reporting that Matters

6 Ways to Compare Your Portfolios

Tuesday, February 21, 2017

 

Many apartment owners’ portfolios have diverse elements to them. Some are divided between urban core and suburban submarkets. Some may comprise a combination of high-rise and garden-style properties. Almost all are divvied up among several regional managers.

Comparing the performance of all your portfolios’ subsets can be a daunting task when attempted manually. Axiometrics’ industry-first Portfolio Comparison tool can provide all sorts of portfolio comparisons with a couple of mouse clicks


Here are just some of the ways you can compare various property groups:

  1. City vs. Suburbs: It’s common knowledge in the apartment industry that urban-core rent growth has been underperforming suburban submarkets and overall metro markets. But that doesn’t mean all urban properties are performing weakly. Comparing your own urban and suburban portfolios can tell you if your properties are bucking the trend and what pricing and marketing strategies are working or need to be adjusted.
  2. Old vs. New: Perhaps you have a diversified portfolio that includes newer, Class A properties and some lower-class projects that you purchased as value-add propositions. While the fancy, new properties will likely achieve higher rent, Class B and C units often attain higher effective rent growth. The Portfolio Comparison tool can tell you which group of properties is performing better and which needs additional focus.
  3. Market vs. Market vs. Market: Across the country, metro markets perform differently because of unique supply and demand indicators. Since you can compare up to five portfolios at a time with Axio’s Portfolio Comparison tool, you’ll see which of your markets are outperforming or underperforming your total portfolio and the nation. This can be helpful in determining future investments or buy/sell decisions.
  4. Types of Properties: If you have a mix of high-rise, mid-rise, garden and/or podium apartment properties – especially if they’re in the same or similar submarkets – you’ll want to compare performance. Higher occupancy at one type of property can help you determine if you want to implement pricing changes or concessions at the other types. The Portfolio Comparison tool’s graphics and charts can give you an overview of comparative performance at a glance.
  5. Unit Mix vs. Unit Mix: Some of your properties could have a high quantity of two- and three-bedroom apartments, while others may be almost exclusively studio and one-bedroom units. Which mix is bringing you the most revenue? How do results vary in different submarkets? This information can be help you design the optimal mix for new properties or potentially remodeling old ones.
  6. Regional Manager Portfolios: As a property owner, you can use the Portfolio Comparison to help evaluate the performance of your management companies. Divide up your properties by regional manager responsibility, and see how each portfolio is performing. The graphics included in each comparison report display the trends of each portfolio, giving you a long-term view of manager success. 

Axio’s unique Portfolio Comparison tool can help you with buy/sell, pricing, concession and marketing decisions and provide accountability. It provides property owners and managers with new ways of determining when action is required to maximize a portfolio’s value.

 

 

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