New Portfolio Maximizer Answers Demand for Systematic and Proactive Approach to Real Estate Investment Management

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Newly released capabilities help investment managers address investors' needs with streamlined modeling of fees, construction loans, and debt mark-to-market calculations.

Resolve Technology, a provider of real estate investment solutions, announced the release of Portfolio Maximizer 2.1.

Used by leading real estate investment management firms, Portfolio Maximizer provides an investment-management centric platform for the modeling and analysis of partnership structures, assets under management, and related debt instruments. With all relevant information available at their disposal, investment managers can use Portfolio Maximizer to calculate cash flows, fees, and partner distributions. Users can analyze historical and future performance as well as run multiple "what-if" scenarios to evaluate the impact of investment decisions and take a proactive approach to maximize investor returns.

The latest release of Portfolio Maximizer adds new capabilities that enable additional investment management processes to be automated and streamlined--transitioning these processes from the error-prone and labor-intensive Excel environment to the robust, enterprise-class platform of Portfolio Maximizer.

Portfolio Maximizer 2.1 features numerous enhancements and new capabilities that are critical to confidently model partnerships, funds, and investor returns, including:

  • Enhanced modeling help portfolio managers keep up with the dynamic nature of development assets and construction loans

Portfolio Maximizer enables accurate modeling of assets under development and tracking of these assets throughout their lifecycle phases from pre-development to construction, leasing, and stabilized operations. Variables that change over time such as development costs, number of rentable units, and net rentable area can be modified through an easy-to-navigate interface.

The system makes it easy to model construction loans and track funds drawn towards the cost of development. Additional funding sources such as cash reserves and investor contributions can also be applied.

Development assets and construction loans modeled in Portfolio Maximizer can be used to track historical performance and forecast future cash flow streams. They can also be used in forward-looking scenarios to optimize investment decisions and maximize investor returns on portfolios that include development assets. Using Portfolio Maximizer's "what-if" capabilities, managers can simulate different scenario--such as budget and time overruns--and assess their impact on investor distributions and returns.

"Development assets play an important role in many real estate investment portfolios," explained Joel Blain, Resolve's Director of Product Management for Portfolio Maximizer. "The dynamic nature of these assets makes tracking and managing these investments especially challenging. You simply cannot do it quickly enough and make sure your results are reliable using spreadsheets."

  • Debt mark-to-market calculations make it easy to comply with fair value accounting and valuation requirements

Portfolio Maximizer 2.1 provides a unified and systematic framework for the incorporation of debt mark-to-market calculations in a partnership balance sheet. It enables automatic calculations of the loan's appreciation or depreciation based on fluctuations in the US Treasury note rate (or any other index).

Mark-to-market calculations can be applied to historical results as well as forward-looking forecasts. Future index rate assumptions can also be entered into the system, feeding into "what-if" scenarios that can be used to evaluate how a new loan would reflect on the existing and forward looking balance sheets.

"The incorporation of mark-to-market data into the loan information captured in Portfolio Maximizer removes yet another set of spreadsheets and potential failure points in the management and reporting of real estate portfolios," said Blain.

  • Integrated fee modeling clearly shows fund managers where their money is coming from both today and in the future

Enhanced fee modeling capabilities in Portfolio Maximizer 2.1 capture all the details associated with the various types of fees paid out of the partnership, including asset management fees, incentive promote fees, fund management fees, and others.

"Fees are such an important component of the investment management mix," added Blain. "Until now, visibility to these fees was limited with calculations buried in spreadsheet formulas, so it was really easy to make a mistake."

Users can select and define multiple methods for calculating each of these fees and apply them to historical results as well as future forecasts and "what-if" scenarios. With all the information in a single system, any changes in property, debt, or cash flow data are immediately reflected in fee calculations--providing managers with complete visibility into both past and future income flows.    

Other enhancements in Portfolio 2.1 include new wizards to streamline the entry of buy/sell data and related loan terms for historical and "what-if" simulations, enhanced asset and loan modeling capabilities, and numerous additional features that further streamline the use of the system to support informed investment decisions and robust portfolio management capabilities.

"We are seeing pent-up demand for Portfolio Maximizer fueled by the new realities in the marketplace. Real estate investors are forced to take a more proactive and systematic approach to the management of their real estate investments, which cannot be satisfied with the hodgepodge of spreadsheets currently used by most firms," said Eric Forman, CEO & Founder of Resolve Technology. "The enhancements delivered in this new version of Portfolio Maximizer will further help those that are looking to step up to the requirements of today's increasingly demanding real estate environment."

For more details and a demonstration of Resolve's Portfolio Maximizer, visit http://www.resolvetech.com or call Resolve Technology at 617-338-0456.

About Resolve Technology:

Capitalizing on in-depth understanding of the unique and elaborate processes involved in the management of real estate investments, Resolve Technology provides reporting and decision support solutions that enable real estate investment organizations to optimize the management of their portfolios.

Resolve's solutions integrate data from disparate sources to present timely and reliable information to decision makers throughout the organization. By automating data collection and presentation, Resolve removes the tedious labor and reliance on spreadsheets that hinder the ability of real estate investment organizations to access information and respond in a timely manner to changing market conditions.

Resolve's products are used by the world's leading advisory and investment management firms, REIT's, life insurance, pension fund, and banking institutions, managing over 2 billion square feet of real estate worth more than half a trillion dollars. Customers include State Street Bank and Trust, Prudential Real Estate Investors, Principal Global Investors, LaSalle Investment Management, UBS, Boston Properties, and Kimco Realty Corporation. For more information visit http://www.resolvetech.com.

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