Kettler Anounces Record Occupancy And NOI For 10,000 Unit Management Portfolio
Company's Growing Market Position and Third-Party Management Contribute to Strong Earnings and Profitability.
November 27, 2007
Kettler, one of greater Washington, DC’s largest diversified real estate companies, announced today a 19% increase in Net Operating Income (NOI) over the past three years and a portfolio-wide occupancy rate of 96 percent. Both are the highest in company history. Double-digit increases in NOI are very rare in a portfolio made up primarily of tax credit assets. These increases are the result of streamlined operations, training, marketing and exceptional market research. Higher occupancy rates reflect continued job growth and a strong regional economy, but Kettler products are proven to command a premium.
Kettler Management oversees 10,000 units in 42 locations throughout the DC metro area, the majority of which are Kettler-owned, and is the largest developer of affordable housing in the DC area with 6,250 tax credit apartments. Since shifting its focus to luxury and market rate apartments in 2000, Kettler has delivered 1,834 apartments in The Metropolitan product line which capture the highest rent per square foot in each of the building’s competitive submarkets.
To continually maximize rents, Kettler’s in-house market research team has developed proprietary forecasting tools which have made a direct impact on the bottom line.
“While we monitor industry trends, we go far beyond that. We look at hotels or retail models to determine how we can improve our operations,“ said Cindy Clare, President of Kettler Management. “In designing new products, we retain the world’s finest architects and interior designers and offer the highest level of finishes to ensure our products command premium rents.” She adds, “Providing exceptional products and services has been instrumental in optimizing rents and minimizing turnover.”
Adding fee managed assets has also helped Kettler grow the company, enhance economies of scale and recruit and retain the best personnel. The third-party initiative has proven to be a major strength for the company. Most rental communities are Kettler owned: however, they do work with institutional partners, such as Cornerstone, ING Clarion Partners and Sun America. More recently, Kettler has been providing predevelopment services, support and management to builders and developers who are transitioning for-sale assets to rentals.
As a result of Kettler’s prominence in the industry and marketing savvy, the company has been able to further increase its value and prominence by developing strategic alliances with such national companies as Apple, American Express, Restoration Hardware, West Elm, Tiffany & Co., FlexCar, VIPDesk and more. These relationships provide residents with exclusive services and give Kettler high-profile cross-branding opportunities.
“Our residents want a wide range of services and high-end amenities in convenient locations. We provide this for them to complement their lifestyles,” added Clare.