As capital becomes more selective, investors are increasingly focused on whether multifamily managers can create value through operations rather than simply through acquisitions. The question underlying much of that diligence, said Mike Altman, CIO at Cortland, is whether a manager can grow net operating income (NOI) on its own merits, independent of leverage or cap-rate movement.
“Risk-adjusted returns don’t come from financial engineering. They come from an operating platform that grows revenue responsibly and manages expenses with discipline, quarter after quarter, regardless of what the capital markets are doing,” said Altman. “That’s the capability they’re selecting for, and it’s the one that holds up across an entire cycle.”
Institutional investors also are demanding more transparency from managers — and more consistency in how information is presented.
“Transparency has genuinely moved up the priority list for investors, and the ask ha
