Enterprise Asset Management University

Asset Management Plan

The Asset Management Plan should include the organization’s overarching strategic priority for asset management as well how the physical andfinancial operations of the portfolio impact the organization. Enterprise highly encouragesAMU groups to include the following elements in yourasset management plan:

Table of Contents

  1. About Organization
  • Include organization mission, major programs and real estate assets and activities.
  1. Goal Statement
  • What is the overarching strategic priority of asset management? Outline your goals/vision and approach. Examples include achieving an increase in economy of scale by growing the portfolio, preserve and maintain existing assets, optimize operations, etc.
  1. Asset Management Structure
  • Asset Management Function, Staffing & Communitcaiton Strategy

reporting structure and communication strategy between the primary asset management team i.e asset manager, Director or VP of Asset Management, if any, executive director and board. Include overall roles and responsibilities for the primary asset management team and how the asset manager will interact with the senior management team and board.

Include how often the asset manager will update and present the Asset Management Plan to the Management Team/Board and points at which project specific presentations will be made for underperforming assets.

  • Financing the Asset Management Function

What is the asset management budget? How is the asset management function being financed overtime? – asset management fees? improved cash flow from properties? cash from refinancing? energy efficiency savings – including combinations of all those sources?

  1. Key Portfolio Metrics and Indicators
  • Include property description and its partners; financial and operational position and challenges; key milestones (i.e maturing debt, expiring contract, etc.) for the properties; quantifiable asset management goals for the year and actionable next steps; timeline; and staff member responsible for addressing the issue(s). A sample format for documenting important key information is attached. Establish procedures for whom in the organization is responsible for providing the initial key information (developer? asset manager?)

Attach Portfolio Watchlist & Action Report - Report should include criteria for including the project on the Watchlist and actionable next steps/activities that are required in the coming months. Watchlist report should include key asset management activities used by the organization to focus attention to the most critically needed areas. This report would be generated monthly by the asset manager for review by the Management Team (monthly) and the Board (quarterly).

  • How should the Asset Manager use the dashboard/watchlist information with the senior management team and board?
  • How should the Asset Manager use the dashboard/watchlist information for ongoing communication with the property management team and to drive performance?
  1. Portfolio Preservation Planning
  • Include refinancings/repositionings and capital/reserve strategies for each property
  • Include strategies to optimize operations
  • Include an Asset Management Toolbox section – the asset manager is responsible for creating and putting into regular practice the organization’s asset management tools. Tools include but are not limited to the items on the attachment list below.
  1. Managing the Propety Manager
  • What is the coordination between updating and reviewing the dashboard and improving operations on the property management side and coordinating budget and capital needs?
  • Who should review the property management reports and what should the staff do with the information?Good idea to upload key indicators into asset management reporting format and not “get into the weeds of too much detail” when reviewing management reports. Key indicators include data such as physical and economic vacancy, accounts payable as percent of operating cash, RFR balance per unit, cash flow, actual expense as a percent of budgeted expense, etc.
  1. Property Cash Flow Analysis & Projections
  • Attach projections. Projections should include historic and projected cash flow from operations, waterfall schedule and anticipated distributions from net cash flow, including cash back to the organization and what contributions/support the organization will need to provide to the properties, if any. This tool could also capture operating information from each property and generate reports comparing operating costs in each category at properties across the portfolio.
  1. Captial Needs – Long Term
  1. Schedule to Complete Key Asset Management Plan Elements
  • Include summary and schedule of anticipated completion of the Asset Management Plan, dashboard, watchlist, capital needs assessments, deal books, implementing energy efficiency tracking systems, etc.
  • Include implementation timeline for each item

ATTACHMENTS

  1. Portfolio Dashboard (update quarterly)
  2. Portfolio Performance Analysis – Year 15 (update annually)
  3. Operation & Maintenance (O+M) Plan (review and update annually as needed)
  4. Preventive Maintenance Checklist (review and update annually as needed)
  5. Emergency Plan: Roles & Responsibilities of Staff & Tenants (review and update annually as needed)
  6. Capital Needs & Reserve Analysis (update annually)
  7. Deal Books (update as needed)

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