Newsletter May 2024

Villas at Sundance Visit: Our Investor Relations and Marketing directors attended the Limitless MD Retreat in Austin, where they toured our latest deal and further honed their relationship-building with vendors and investors alike. This endeavor aimed to open new opportunities for fund-to-fund managers and make group investing even more accessible for our investors.

Some key takeaways from the Limitless MD Retreat: 

•  Despite apocalyptic media portrayals, global GDP, food access, education, and technology are all on the rise, signaling worldwide improvements in prosperity and quality of life.
• Viking Capital is looking forward to partnering with Tribevest to support our investors looking to advance their capital raising potential as fund managers.
• Bedros Keuilian addressed the audience about discovering a purpose beyond oneself when building wealth. He emphasized that, aside from creating time and location freedom, money can serve a higher purpose for the benefit of humanity.
• Villas at Sundance Takeaway: The entire community is gated! Further making this property extremely sought after for it’s affluent tenant base.

Meanwhile, the asset management side of the company traveled to Atlanta to learn more about elevating living experiences for our tenants, advancing properties for ESG initiatives, and met in person with our property management company.

Key takeaways:

• Persistent undersupply: The U.S. housing market continues to face a supply shortage, with less than a two-month supply of resale inventory nationwide. Builders, especially larger public companies, are stepping in to help address this issue.
• Enhancing Tenant Wellness: Learn innovative strategies and best practices for improving tenant wellness through amenities, community engagement, and support programs that contribute to higher tenant satisfaction and retention
• Integrating ESG Principles: Viking led the discussion on how to effectively incorporate (ESG) principles into your asset management strategy, ensuring sustainable and socially responsible practices that attract investors and enhance property value.

As always, if you have any questions, do not hesitate to reach out to our Investor Relations Team. 

Onward & Upward,

To produce their new study, researchers at the Schwab Center for Financial Research analyzed the hypothetical 20-year returns of five investing strategies using historical S&P 500 data. Each hypothetical investor received $2,000 every year, which they could invest however they like.

The investors took the following approaches:

• Perfect market timing: One investor invested $2,000 each year at the S&P 500’s lowest trading point.
• Immediate investing: One investor put $2,000 into the S&P 500 on the first trading day of each year.
• Dollar-cost averaging: Another investor split the $2,000 into 12 equal allotments and invested one portion on the first of every month.
• Poorly timed investing: One investor invested the entire $2,000 at the S&P 500’s highest point of the year every year.
• Treasuries: The final investor avoided stocks altogether and instead put their $2,000 into U.S. Treasury securities each year as a cash proxy and left it there.

What the study showed: 

• Perfect market timing delivered the best returns, but immediate investing was a close second, trailing by only about 8% over 20 years.
• The best action for most long-term investors is to create a plan and invest as soon as possible, regardless of the current market level.
• Perfect market timing is practically impossible. The firm’s research showed that most investors are better off investing as soon as possible using a buy-and-hold strategy rather than trying to predict short-term peaks and valleys.

In our latest webinar, we delved into the latest Fed Fund actions and their profound implications for your investments.

Key Takeaways:

• Impact of Interest Rates on Multifamily Properties: Understand how rising and falling interest rates can affect the multifamily real estate market.
• Key Investment Dynamics: Learn the crucial strategies and market dynamics to navigate and thrive in the current investment landscape.
• Viking Capital’s Predictions: Gain insights into our predictions for the Fed’s upcoming moves and what they mean for your investment portfolio.

ATTENTION Viking Capital Investors! 

We’re thrilled to unveil our first Investor State of the Union. Listen today and learn:

• What economic trends are impacting multifamily, and our deals specifically.

• How Viking Capital plans to navigate economic uncertainty and the current market cycle.

• Why diversifying in various market cycles is advantageous.

• How our current portfolio is performing and our goals for the remaining quarters of 2024.

As you know, the Federal Fund rate went unchanged at the latest meeting. With the latest economic inflation numbers, we expect that interest rate cuts likely won’t happen until Q4 of 2024, if at all.

What this means for Viking Capital:

• The economy remains strong, providing decreased vacancies across the Viking portfolio.
• Lower transactional competition in multifamily due to high interest rates- giving Viking Capital’s latest deals ideal cost basis and strong returns to our investors.
• Now is the time to buy, with a plan to exit when pricing is high and interest rates are low.

We cover this topic extensively in our latest webinar. Watch the replay to learn more.

Viking Capital is pleased to announce our latest Investor Perk: The Investor Toolbox – the one stop destination for all of your investor resources and education.

In just one location, find all of the crucial updates on new deal alerts, latest articles, webinar replays, new courses, ebooks, market reports, and even a risk assessment tool!

Stay informed, stay ahead – dive in now!