Last sunset of 2009

I am sure most of you will agree with me that its nice to see this one behind us. Looking forward to some real opportunities in 2010. Happy New Year!

Sent from my Verizon Wireless BlackBerry

2010 Here We Come

2010 Here We Come

            While doing the holiday party circuit this past week, I heard one thing constantly; no matter what industry you are in, "goodbye 2009 and hello 2010". This is ironic because no one is projecting that business will be better in 2010. People I have spoken with, expect that the state of confusion and pessimism that has dominated 2009, will change to more optimistic and steadier times that will allow companies to properly plan out their futures.

            In my eyes, the real estate industry and the apartment market more specifically will not be running quite as smoothly.  I think the markets are now at the point where we can project and budget our next 12 months, but they are not looking very pretty.  Unemployment is still very high and apartment buildings are difficult to manage when residents are losing jobs.  Until the job engine gets started again 2011?  2012?  Currently, we can't predict any increases in rents and our fixed operating expenses will continue to grow, many in our industry will just keep "waiting it out".

            At Signature Community we are not "waiting it out". This quarter alone we have initiated over 150 changes into our organization to help bring costs down.  We are changing our office hours to be more customer friendly, sharing jobs across the country to take advantage of down time, revamping processes to take advantage of operational efficiencies and using technology to make our employee's and resident's lives easier.  This change effort is not limited to making an immediate impact on the SCM balance sheet, but will position our organization as one that can change with the times. More importantly, SCM will be capable of changing the way it does business, which exceeds the typical management company. 

            On a positive note, I see 2010 as a year of major growth at Signature.  Many of the sellers (banks) we have been working with for more than a year are finally getting into position to sell assets instead of "delaying and praying" like they did in 2009.  The nice thing about our focus and expertise in managing smaller than institutional size apartment properties, is that many lenders are having difficulties with these assets, mainly because they lent to "mom and pop" inexperienced owners who are not doing the tough work that Signature has been doing in 2009. Those assets are now being sold for very significant discounts by the lenders.  That should lead to some nice growth opportunities for Signature in 2010.

Thanks for supporting Signature Community in 2009 all your hard work and patience will make things happen in 2010 and beyond!

 

Nick