PPR’s leadership team recently held a Q3 2024 Investor Update call – and the news was overwhelmingly positive. Despite some macroeconomic headwinds this year and last, PPR continues to successfully execute on its growth strategy and long-term goals.
Portfolio Breakdown & Assets Under Management
PPR closed out the previous quarter with $989 million in assets under management (AUM) and $400 million in equity under management (EUM), showcasing the firm’s continued growth quarter after quarter. The breakdown of PPR’s current AUM is as follows:
- 67% in NPLs, RPLs, REO
- 29% in multifamily
- 3% in commercial mortgages
- 2% in Opportunity Fund I
Loan Portfolio Update
In Q3, PPR purchased $32.5 million in assets representing more than 100 individual loans across 12 different trades. As noted by PPR’s Director of NPLs, Taylor Nelson, the purchase amount appears to be slightly lower than previous quarters, due to the scattered timing of deal closings; however, the firm has an additional $75 million in trades currently in the diligence process that are expected to close in October. Looking ahead, Nelson projects that PPR’s total loan purchases for 2024 will reach approximately $350-400 million, making it one of the largest NPL deployments in PPR history.
One particularly notable transaction was a $100 million reperforming loan (RPL) sale of around 400 assets that PPR executed during the quarter. By aggregating and packaging performing loans into a larger pool, the firm was able to achieve strong pricing and demand from buyers. PPR is currently in the market with another RPL sale that is expected to close in mid- to late-November, further demonstrating the team’s ability to effectively manage and monetize our loan portfolio.
Multifamily Expansion Continues
PPR’s multifamily portfolio now accounts for more than 1,800 units across the country with the AUM increasing significantly due to recent acquisitions. The portfolio has achieved strong operational performance with positive rent growth at 1.05% this quarter and occupancy rates nearing 90% stabilization. Loan extensions, refinancings, and targeted renovations have helped to drive this success.
Recent Acquisitions
In July, PPR acquired its 8th multifamily property: a 252-unit vintage property with large living units in Cleveland, Ohio. The experienced on-site team, with an average employee tenure of 16 years, was a major selling point for this investment. The plan is to renovate and upgrade approximately 200 units, targeting a $350 per unit premium on those upgraded apartments.
Austin Affordable Housing Project
PPR’s affordable housing development project in Austin, Texas, is nearing 70% completion. This property is still slated for final delivery in January 2025 and PPR is currently in the process of finding potential buyers in early 2025, in line with the original business plan. The team is currently finalizing MOU terms with a new non-profit partner to achieve a 100% tax abatement on this property.
PPR Update
High Level
PPR’s Q3 growth overall was highly positive. The firm raised $24.5 million in capital and continued to grow its investor base. PPR also added a new Opportunity Fund earlier this year, which focuses on alternative investment opportunities that generate upside akin to a venture capital firm. This fund has continued to gain traction with investors, with the capital raise growing steadily.
Team Member Updates
Congratulations to Stefani Baker, who was promoted to Relationship Manager in the Investor Relations Department.
PPR Gives Back
Purpose, prosperity, and relationships – that is what PPR stands for. This quarter, the team volunteered with ProjectHOME, an organization that offers permanent, subsidized housing for individuals and families who had been homeless. The team visited ProjectHOME’s Helen Brown Community Center and helped pack and deliver food items to guests.
Interested in learning more about PPR and our current offerings? Connect with our Investor Relations team today for a no-obligations call.