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Good morning, everyone. Thanks for joining me today to the 2013 Zero Debt Investments
Annual Report. For the full year 2013, Zero Debt Investments
delivered revenue growth of 50%. Revenues increased from $45,500 in 2012 to $68,485
in 2013. These results are slightly above our expectations at the beginning of the year
and are among the best numbers in our 5-year history.
We're very pleased that for the very first time ever, we've had 2 consecutive years of
20% revenue growth or better. So we're very pleased with our operating performance last
year and we wanted to acknowledge the contributions of the Zero Debt Investments team across Michigan
that delivered such strong performance for us.
And I'm pleased to say that as we sit here today, we continue to see favorable fundamentals
across our markets and expect to achieve yet another year of operating performance above
historical trend in 2014, and now will continue to string some of the best year-over-year
results in our history. Occupancy is currently 95.1%, which is very
strong for this point in the season. Currently we have 9 units leased, that's an
increase of 80% from 5 units in 2012. Fundamental factors of supply, while increasing,
appear to be manageable, while demand continues to be steady, as the economy continues to
pick up steam, fueling increased job growth and household formation. The combined dynamics
of favorable long-term demographics and the continued aversion and economic challenges
to homeownership will ensure steady demand for rental housing for the near term.
Our resident base remains very healthy, with rent as a percentage of income remaining steady
in the 17% range and the percentage of FICO score is above 720, continuing to grow.
Real estate taxes, payroll and utilities make up 68% of total operating expense, and we
expect a net decrease of this percentage in 2014 as we try to have all our property taxes
reduced. Utilities will have marginal growth of 2.5%
as we continue to invest in green initiatives, like LED lighting retrofits and upgrading
and optimization of central systems. Payroll should again be well under control, while
all other core operating counts are flat to down, as we continue to find innovating ways
to leverage our platform, optimize costs and realize immediate benefit to our same-store
portfolio as a result of adding more assets. With that said, I'd also like to recognize
everyone for the tremendous effort put forth over the past several months. We are all energized
by the tremendous amounts of activity and even more invigorated and excited about what
lies ahead. As of today, January 2nd 2014, we have no
outstanding debt, all our properties are 100% equity funded.
In 2014 we will continue to form partnerships and aquire assets totally debt free, that
way making Zero Debt Investments even more stable and prepared for future economic downturns.
Thank you very much for watching this video. Feel free to contact me if you are interested
in investing with us or if you have a business or a rental property for sale.