From the Desk of CF Capital: March Investor Report

Hello Friends and Investors, 
 
I hope you're doing well and ready to kick off spring time! All-around happenings remain productive for CF Capital as we navigate a hyper-active environment in the broader economy. It's certainly an important time to be informed of the many cross winds that are blowing, but also a great time to check in to understand how your mindset is being conditioned by the inputs you're allowing in. Our team with CF Capital is completely dialed in to understand the broader trends to anticipate and strategize around within our current and growing portfolio, and we remain positively focused on healthy growth amidst a time when many seem to be focusing on solely negative conditions. 

In early February, we attended the annual NMHC Conference in Las Vegas, and met with the industry's best and brightest to strategize in 2023 and beyond growth strategies, as well as contingency plans for navigating uncertain times in the multifamily space. Across a couple days, we met with 40+ strategic partners, brokers and debt providers and walked away with optimism, strengthened relationships, and many new investment opportunities to evaluate.

Mid February, we began our "State of the Investment" Webinars series for all active deals in our portfolio, to share with our current investors where we are relative to our plan and projections. We received overwhelmingly positive feedback from investors about this communication tool, and hearing directly from us on the details of how the business plan is performing, and how that impacts their investment with us. We're encouraged to continue to strengthen our relationship with our valued investors through this medium, as well as best in class communications and execution. 

We're continuing our hyper focused approach on portfolio management, and in particular leading our team in the standard of outperforming industry standards on collections, leasing, and renewals. While in Q4 we experienced somewhat of a slowdown in new leasing (which isn't abnormal, due to seasonality), we're very pleased with a substantial uptick in traffic in Q1. Beyond that, our teams at each asset have been shining in particular on collections (averaging over 95% across the portfolio) and renewals (averaging 10% across the portfolio), along with very positive trends on a month over month basis. These fundamentals remain our hyper focus, in addition to attracting and retaining the right talent on our sites (we just hired 3 new staff members across the portfolio) and pushing the ball forward on major capital expenditure projects (exterior projects including parking lots, electrical conversions, amenity conversions and ongoing interior unit renovations). Needless to say, our team has been working hard to deliver for our investors.

On the acquisitions front, our pipeline is growing and we're evaluating 12-16 deals that meet our acquisition criteria every month. We've got a couple deals right now that we're targeting closely, and are patiently aggressive towards securing our next opportunity for your consideration. Conventional wisdom in our space at the moment remains that the second half of 2023 will be highly compelling with more forced sellers than at any time over the past several years. We will absolutely keep you informed as this develops. For our acquisitions team, we're planning to hire an ambitious, high upside professional with character and energy to help us grow the CF Capital portfolio across the region in the very near future. A job posting will be coming soon, but if you are or know anyone who would be interested to discuss this opportunity, please reach out or make an introduction. This will be a life changing opportunity for the right talented individual.

This month, we're traveling out west once more to attend the Best Ever Conference for Commercial Real Estate Investors in Salt Lake City, UT. In addition to strengthening our current strategic partnerships, we're looking forward to expanding our network as opportunities in this next cycle begin to unfold. Tyler will be speaking on "Enhancing Your ROI by Elevating Communities Together," a concept that's near and dear to our hearts and that has been a separator for CF Capital. If you'll be attending the conference, please let us know and we'd love to make plans to get together in person. 

In Partnership, 
Tyler & Bryan 

PS. If you'll be in or around Louisville in late March, we'd love to invite you to attend our next event: The 2023 Real Estate Investment Landscape Moderated Panel & Event sponsored by LDG Development. Register for the event.