#MAMConf14 New Methods in Operational Benchmarking Panelists: Melanie Morrison, CPM Mark D. Mahoney Dom Beveridge, MBA Moderator: John Njoku The Panelists Mark Mahoney Vice President – Asset Management Dom Beveridge, MBA General Manager #MAMConf14 Melanie Morrison, CPM Co-Owner & Designated Broker John Njoku CEO & Founder Intro & Agenda 1) Internal Benchmarking Best Practices • Dominium • MEB 2) External Benchmarking Innovations – New Metrics • Multifamily Data Exchange – RPU • Kwelia – Kwelia Health Scores 3) Data Transparency 4) Evolution of New Asset Classes 5) Wrap Up/Final Thoughts #MAMConf14 Internal Benchmarking Rankings & Points #MAMConf14 #MAMConf14 Monthly Performance Meeting #MAMConf14 Peer Comparison Internal Benchmarking The Value Creation Dashboard #MAMConf14 Internal Benchmarking #MAMConf14 Internal Benchmarking #MAMConf14 Internal Benchmarking #MAMConf14 External Benchmarking Quick Poll #MAMConf14 External Benchmarking Technology & New Metrics #MAMConf14 External Benchmarking Multifamily Data Exchange #MAMConf14 #MAMConf14 The multifamily industry approach to performance benchmarking is like playing a game without keeping score Some Rules For Keeping Score #MAMConf14 • It must measure how well we did relative to comps • The score must be factual – i.e. not estimated • There can only be one score for all competitors How Multifamily Does It Today #MAMConf14 Requirement Multifamily Approach • Historical • Asking-rent based • Factual • Estimated, survey-based • Definitive • No point of truth on performance Hotel Industry Shows The Way #MAMConf14 • Benchmarks based on actual performance • Metrics based on actual revenue – no surveys • Single, simple set of metrics for all participants There is no good reason why the same clarity should not be available in the multifamily industry External Benchmarking The Kwelia Health Score #MAMConf14 External Benchmarking Kwelia Health Score A 0-100 Metric that shows an apples-to-apples measure of performance against comps. #MAMConf14 1 We use data science to derive a “market” price for every unit type. • Location • Configuration • Amenities 2 With property occupancy and actual rents, we compute a health score for each property. Privacy & Sharing #MAMConf14 Data Transparency A Changing Market #MAMConf14 The Evolution of New Asset Classes Conclusion Final Thoughts? #MAMConf14 Contact Us! Mark Mahoney VP – Asset Management Dominium Development & Acquisitions mmahoney@dominiuminc.com (763) 354-5608 Office Melanie Morrison, CPM Principal MEB Management Services melanie@mebmgmt.com (520) 618-3811 Office John Njoku CEO & Founder Kwelia john@kwelia.com (512) 222-9532 #MAMConf14 Dom Beveridge EVP & General Manager Multifamily Data Exchange (MDX) dom@multifamilydataexchange.com (415) 713-0489