At Stoneweg US, we narrow the housing divide between high-end and affordable properties by concentrating on the vast market of over 40 million middle-income renters. Our strategy includes deliberate property acquisitions and developments in robust markets, guided through our proprietary SMART tool and hand-selected by our team of experts with decades of experience. Through a commitment to ESG principles and active management, we enhance the value and returns on our investments.
Enabling Access to a Resilient, High-Growth Market
Sustainable, Attainable Workforce Housing
Providing desirable housing to middle-income renters in the communities and neighborhoods where they work is a pillar of our ESG platform. Our approach centers on tactical property acquisitions and developments in robust markets, guided by our exclusive SMART tool. Potential investments are thoroughly vetted by our team of experts who evaluate the property and our ESG optimization strategy to ensure that the investment is consistent with our ESG focus while producing solid returns.
Several factors influence the workforce segment, including increasing home prices, slow wage growth, and a shortage of affordable and attainable housing. During periods of financial hardship, we anticipate an increase in demand for workforce housing as homeownership or luxury units become less attainable, enabling the maintenance of stable cash flow.
Navigating Risk
Our primary focus is taking proactive steps to manage and mitigate risks in asset selection. These risks encompass a range of factors, including climate change-related natural disasters, increased insurance premiums, reduced coverage, rising operational costs, higher energy expenses, and heightened capital expenditure requirements to fortify buildings for increased resilience.
Enhancing Asset Value
Asset optimization is a priority across Stoneweg US’ portfolio, from our SMART tool to ESG solutions, which include electric vehicle charging and solar that reduce consumption of resources to achieve operational efficiencies. We aim to extract maximum value from every asset across the real estate life cycle through acquisition, operations, and disposition.
The Foundations of Our Approach
Our ESG Commitment: Weaving Sustainability into Our Every Endeavor
Our performance speaks for itself with a track record of consistently delivering competitive risk-adjusted returns. We have achieved an approximately 27% net internal rate of return (IRR) across 40 exits to date with zero realized losses. Our focus on risk management is reflected by a prudent use of leverage, typically maintaining a 50-60% LTV ratio.
ESG Optimization
Our ESG Optimization strategy has demonstrated tangible results at both the corporate and asset levels. We stand as a thought and practice leader among our peers, relentlessly raising the bar for ESG standards in all facets of multifamily investments. Embracing the forefront of innovation, we prioritize Data Science in our operations, continuously exploring how technology can unlock new levels of value and efficiency.
Team Culture & Leadership
At the core of our organization, we nurture a distinctive culture that centers around inclusivity, diversity of thought, and a strong entrepreneurial spirit. Our published fundamentals serve as a guiding compass for our corporate strategy, influencing our decisions on a daily, weekly, monthly, and annual basis. Anchoring our leadership is the Executive Leadership Team (ELT), boasting decades of collective experience spanning multiple economic cycles, providing invaluable expertise and insights.
Reporting & Transparency
Success in ESG strategies hinges on the reliability and precision of reporting. The ability to quantitatively measure and thoroughly analyze outcomes is crucial. At Stoneweg US we take pride in our commitment to reporting, collecting data at the asset, fund, and investor levels since inception. This dedication is a cornerstone of our fiduciary approach, reinforcing our commitment to responsible stewardship, exceptional value, and optimizing performance in real estate investment.
Having access to reliable, detailed data is critically important. Not only does it support our ability to report on our ESG strategies and our investment performance, but it can also be analyzed for real-time insights that we can use to continuously inform our underwriting and improve our operations.
Karen WellerEVP, Chief Financial Officer
Data Science
Automated Data Collection
and Data Centralization
Over the years we have put processes in place to automatically collect data that is relevant to our ESG initiatives. These processes help us understand what we do, how we do it, and measure the impact of our initiatives. This data is then used to report to our investors and stakeholders in a clear and transparent way. Another notable commitment to data centralization is the implementation of an ERP with a central data base; all of our applications and virtual platforms are linked to ensure data consistency in all of our activities.
Resident satisfaction
Leveraging platforms like Kingsley surveys to measure resident satisfaction translates into value for our investors.
Financial Reporting and Analytics
We integrate various software solutions into a centralized platform, which allows us to perform extensive analytics on our investments and funds while streamlining our reporting capabilities. Having the data centralized improves efficiency, accuracy and transparency while minimizing the time required to report to our investors.
Investment Identification
The Stoneweg Market Analysis Ranking Tool (SMART) was developed to leverage centralized data points to make informed investment decisions.
Sustainability reporting
Energy, gas, and water consumption data, as well as waste management metrics are automatically collected through our Bill Pay agent.
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