Corporate Strategy

Our primary business objective is to deliver strong, consistent returns to our investors, while enhancing the long-term growth in value of our real estate portfolio. By following specific operating and renovation-related strategies, we will seek to achieve stability and growth through maximization of cash flow from our properties and investment in commercial and multi-family properties.

Value through property acquisition

RECCMOX seeks opportunities to purchase well located, moderate income apartment communities which we believe are under performing, but could benefit from improved property management operations, minor capital improvement plans or major renovation plans. We will seek properties that can be upgraded to an institutional quality level with improvements. We intend to acquire properties in selective targeted urban and sub-urban markets that exhibit the proper desired trends in projected supply/demand of apartments, Proximity to university and or College, job growth, population growth and economic growth. We believe that the strategy of acquiring and renovating middle income apartment communities is a safer strategy than buying or developing higher income rental communities whose affordability appeals to a much smaller rental market.

Value through capital reinvestment

We seek to add value to our portfolio by redeveloping our existing assets. In residential apartments, this can mean renovating public spaces, entryways, introducing amenities, satisfactory outside and inside features. While in shopping Centers it can mean renovating public spaces such as entryways, washrooms, food Courts, addressing design issues or converting anchor space to small tenant space. Our objective is to produce a final result that is more attractive to both tenants and customers.

Value through Asset Management

RRECCMOX asset management assumes overall responsibility for each asset in our real estate portfolio. The goal of the asset management is to develop an annual business plan for each property, including revenue enhancement strategies, line item expense control, capital improvement plans, financing strategies, future disposition/exit strategies, and to insure that the business plan is executed. We believe that much of the opportunity to create value for investors exists in the day-to-day property management and leasing operations. We intend to maximize current and future cash flows by actively managing our asset to create operation efficiencies, lower our cost of capital and enhance cash flows. Well maintained properties will provide attractive and dependable yields over time. Thus, our strategy is to make continual capital investments in our properties, in order to ensure resident satisfaction, remain competitive, and enhances each property’s living environment.

Values through financial strategies

RECCMOX pays particular attention to the financing strategy for each of our properties to insure that:

The financing term is compatible with the property’s exit strategy,

The financing structure compatible with the property’s capital improvement plan,

The financing takes advantage of locking in low interest rates at the appropriate point of the economic cycle, and

The amount of leverage is conservatively measured against each property’s operating cash flow prospects.

Analyzing three key factors: interest rates, capitalization rates (Cap rates) and cash cost of equity is vital to understanding of an income generating property. Another factor of great importance is Time. When making acquisition decision Reccmox measure these factors relative to yield to make accretive investment over a long term even during a period of compress yield.

Value through disposition strategy

We intend to hold each of our properties for long-term investment. However, our strategy for determining any particular property’s holding period and exit strategy is based upon the property, capital market, the players and external environment. We intend to review, on an annual basis, the expectations of a particular property during the annual property business plan process. The future expectations for each property will be based upon a thorough review of many factors including:

Projected economic and job growth prospects in the market area,

Projected apartment supply/demand trends,

The market competitiveness of our property, and

The future projected return of the property (referred to as a re-buy analysis) compared to alternative investment opportunities.

If we decide that a particular property should be disposed of, we believe we will have a competitive advantage in disposing of that property due to our market knowledge and disposition strategies.