

Buy-Yield Strategy
Geared towards a stable cash flow
with minimal risk, this type of acquisition diversifies the portfolio and counter-balances the riskier investment strategies. The primary factor in pursuing this type of strategy is the ability to obtain a favorable going-in acquisition price.
Yield-Enhancement Strategy
The focus is properties with a fairly stable existing net operating income (“NOI”), where there is an opportunity to increase it, e.g.; extending existing leases that do not have pending expirations.
Buy Vacancy/Renewal Strategy
Relatively stable properties that have short-term NOI problems, such as existing vacancy or pending renewals. The risk associated with this type of asset will typically facilitate obtaining an attractive acquisition price.
Credit Risk Strategy
Involves the acquisition of an attractive asset at a discount due to the credit status of the primary tenant. This strategy requires the consideration and analysis of a number of mitigating factors, including, but not limited to: (i) the nature of the tenant’s use (importance of the tenant’s facility, e.g. headquarters); (ii) tenant’s tenure at the property; (iii) extent and timing of tenant’s capital investments in the property; (iv) location (if tenant defaults, how difficult would it be to find a replacement tenant); and, (v) underlying financial characteristics of the tenant.
