Portfolio Analysis

45 Buildings/ 815 Units

A nonprofit organization which owned of 815 units in 45 buildings sought expertise in reviewing the status of their property portfolio in preparation for the Board’s strategic planning process. AIM’s analysis included site visits; a review of each property’s income expense statements and balance sheets including replacement reserves, residential and retail rental income sources and net operating income; tax abatement status; the rate, term and repayment status of existing debt; a review of subsidy expirations; and physical condition and rehabilitation needs. The status of each property, observable trends and potential risks, and recommendations for rehabilitation priorities were included as part of the report.

The analysis was used by the organization’s staff to prepare a comprehensive action plan that included building priorities, staffing, and funding allocations.

50 Properties Nation-wide

A faith-based organization had recently taken over property management for over 216 buildings across the nation. The properties, which range from stand-alone buildings to large campuses, are utilized by local nonprofit partners for programs that serve at-risk women, youth, and children. In addition to the detrimental impact that deteriorating buildings were having on advancing missional goals, the organization had concerns about the staffing needs and limited fiscal resources available to manage the portfolio. There were also concerns about long-term program sustainability at some locations and disparities between existing programming and community needs at other locations. As a member of the Consultant Team, AIM reviewed the portfolio, provided recommendations to improve the day to day management and decision-making process, and led the development of a mission-aligned strategic plan with comprehensive policies, procedures and protocols.

AIM began with a thorough review to ascertain each property’s unique history, uses and challenges. The analysis revealed a number of existing and potential risks that could be addressed by improving the portfolio management process. Based on our analysis, we began by providing recommendations for short- and long-term proactive property management. This included developing a portfolio management system that identified critical property stability indicators and a database to facilitate property tracking and provide an early warning system for properties at-risk. Management tools we developed included standardized property reporting templates, site visits surveys for both property and programs, methodologies for assessing the fiscal, programmatic and operational health of local nonprofit partners, a rubric to support staff in ongoing property reviews, and recommendations for short and long-term intervention strategies. The results of our initial property assessment were used to select a sample of locations for in-depth site visits to further inform the strategic plan.

The Consultant Team’s proposed strategic plan focused on standardizing the decision-making process and provides strategic goals, objectives, and specific policies focused on stabilizing and preserving the portfolio while meeting the organization’s missional goals. The plan takes into account existing budgets and fiscal constraints, and includes management and staffing recommendations.

The plan is currently under review by the organization’s Board of Directors.