Greystar is the preeminent, vertically integrated residential real estate company offering expertise in investment management, development and property management of rental housing properties – multifamily, student housing, senior living and corporate housing– globally. Headquartered in Charleston, South Carolina, USA, Greystar manages and operates an estimated US$200 billion+ of real estate in nearly 200 markets globally including offices throughout the United States, UK, Continental Europe, Latin America, and the Asia-Pacific region. Greystar is the largest operator of apartments in the United States, managing more than 713,000 units/beds, and has a robust institutional investment management platform with approximately US$37.2 billion of assets under management, including over US$16 billion of assets under development. Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world class service for rental housing. By adhering to its core values – Integrity, Respect, Professionalism, Accountability, Service, and Teamwork – Greystar continues to innovate and create solutions that help it to fulfil its mission. To learn more, visit www.greystar.com.
Despite increasing competition from major institutional players in the US, the multifamily sector overall continues to be overwhelmingly fragmented, with less than 25% of the entire professionally managed rental stock managed by the top 50 operators in the country. As the largest vertically integrated multifamily operator, the sector’s fragmentation presents opportunity for Greystar to create value through leveraging its deep local market expertise and the inherent economies of scale from its platform.
Greystar expects that multifamily demand will remain solid in the US in coming years. Greystar’s positive outlook is driven by a combination of consistently solid housing formations and sustained population growth, deteriorating homeownership affordability, and reasonable, albeit growing, overall residential housing supply. While the COVID-19 shutdown shook the US economy, US multifamily product proved incredibly resilient given higher-income tenant profiles, with consistently strong operational performance through the shutdown. Institutional renters are faired far better than the overall population as evidenced by strong collections and relatively stable occupancy trends. Urban markets experienced temporary weakness in demand fundamentals given high levels of supply and more stringent shutdown measures, but Greystar expects an expedient rebound in these well-heeled employment markets as the vaccination measures become widespread, the virus is contained, and employees return to office environments. While near-term economic fundamentals will largely be contingent on virus containment, the US is poised for a resounding rebound driven from pent up consumer demand. From a demographic perspective, the US continues to host a record-size population of young adults – the age cohort with the highest propensity to rent. We expect a surge in rental demand as markets reopen and household formation was delayed from the shutdown. Homeownership remains increasingly unaffordable despite a historically favorable interest rate environment continuing to push households to rent longer. Supply of residential housing continues to trend below historical averages, creating an imbalance that has resulted in a consistent trend of rent increases, well surpassing peak prices prior to the global financial crisis. For the foreseeable future Greystar expects that rent growth will continue at a healthy spread above inflation, creating a positive operating and investment environment.
Investment principles & strategy
With over 26 years of experience investing in residential rental housing, Greystar has developed a successful investment approach focused on identifying and executing opportunities that seek to drive value at the property-level. Proven purpose-built rental design and operational excellence lead to a premium over market rents, often above-inflation growth, while offering security of income and a lower volatility outcome. Greystar continually seeks to deploy capital in markets with strong fundamentals while executing the investment strategies it has agreed upon with its capital partners. These strategies benefit from the company’s extensive information networks and relationships, including property management clients, lenders, developers and institutions to identify investment opportunities. Greystar’s vertically integrated, global platform is well-suited to source off-market opportunities and quickly analyse, underwrite and execute on single-asset acquisitions and developments, as well as large portfolios.
Greystar believes that compelling opportunities typically include characteristics that fit within the following profile: (i) assets in attractive locations within high-barrier-to-entry submarkets in a strategy’s target markets that are poised for outperformance due to strong residential fundamentals; (ii) assets that exhibit potential for operational improvements leveraging Greystar’s property management expertise and scale; and (iii) assets that display upside potential through executing Greystar’s historically proven capital renovation programme.
Strategic corporate development
Greystar has replicated its strategy in the United States in selected cities across Europe, Asia and Latin America by building a blue-chip organisation that will be the market leader of rental housing globally. Institutional capital highly desires income-producing residential property, especially in Europe, where markets lack ample supply of assets and sophisticated operators. As a result, the market opportunity is reminiscent of the multifamily industry in the US when it was in its infancy, and few sophisticated companies focused on the industry. Greystar’s time-tested expertise across its three business lines is unrivalled in Europe and represents a massive competitive advantage on which it is capitalising. Greystar has invested significant resources in its expansion in the UK and also across continental Europe as it strategically positions itself. The company has been keenly focused on building local platforms by exporting its culture and its investment management, development and operational expertise in the student, multifamily, corporate and senior housing market segments.
The information contained in this document is provided as of the date above, unless noted. This document does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any such offer/solicitation can only be made by the applicable offering documents furnished to qualified investors in jurisdictions where permitted by law. Any opinions, forecasts, projections or other statements, other than statements of historical fact, that are made in this document are forward-looking statements. Greystar gives no express or implied representation or warranty, and no responsibility is accepted with respect to the adequacy, accuracy, completeness or reasonableness of any information set out in this document, and nothing contained herein shall be relied upon as a promise regarding any future performance.