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Improving Performance
using Property Data
by RealFoundations
12th May 2021
The information contained in this presentation is confidential and is not to be disclosed to third parties.
Contents are Copyright (c) 2000-2021 Real Foundation, Inc. and all rights are reserved. (“Confidential”).
RealFoundations | Overview
→ Mission: Making Real Estate Run → Collaborative Work Methods: We
Better rely heavily on collaborative work
methods to accelerate problem
→ People: >300 client-serving solving and effectively drive change.
professionals with 8 global offices,
and an Executive Management → Proven Models & Frameworks:
team with >25 years working We develop solutions based on
together. proven knowledge frameworks and
information models.
v v
→ Methodology-Driven Execution:
→ Core Values: We work hard, we tell We implement solutions using tested
the truth, and we do what we say tools and templates.
→ Management Consulting: Design, → >450 clients: Corporate Occupiers,
build and deploy strategies and Developers, Institutional Investors,
solutions for technology, Owner/Operators, and Property
organisational structure and business Managers.
process improvement.
v v → Facing Operating Challenges:
→ Managed Services: Outsourced International expansion, cross-border
operation of business processes and alignment, fragmented supply chains,
technology solutions that enable technology issues, etc.
management and measurement of
real estate information.
→ >2,400 projects & services
delivered
T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 1Our Management Consulting Capabilities
RealFoundations Management Consulting engagements identify the critical areas for greatest business
improvement, and then leverage decades of accumulated industry expertise to design and implement solutions
that make real estate run better.
Strategy Operational Innovation Finance Transformation Performance Measurement Technology
→ Operating Model → Diagnostic Assessment → Finance Organisation → Information Model → Technology Architecture
Alignment Assessment
→ Operational Advisory → Capability Enhancement → Business Intelligence
→ Core Process → Measure Definition
→ Information → Procurement & Spend Optimisation → Cloud Strategy &
Optimisation → Data Governance Migration
→ Sourcing → Transaction Automation
→ Capital Project → Data Supply Chain → Software Implementation
→ Roadmap Development Management → Integrated Business & Integration
Planning → Reporting & Analytics
→ Revenue Enhancement → Digital Workplace
→ Benchmarking
Differentiators Benefits
→ Delivery teams know the real estate industry and can hit the ground → Frees clients to focus on core business and strategic initiatives
running
→ Optimises approach to managing accounting and finance functions
→ Solutions rely on deep knowledge and capabilities in accounting,
finance, operations and technology → Maximises technology return on investment
→ Sector-specific solutions, using industry leading practice knowledge base
→ Improves operational efficiencies, maximises profits and provides
→ Common methodology and service frameworks ongoing cost savings
→ Proprietary intellectual property embodied in delivery tools
→ Reduces overall risk
→ RealDiscovery collaboration approach
T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 2Our Managed Services Capabilities
RealFoundations offers a range of leading sourcing alternatives to enable real estate companies to source
components of their business processes using our world-class on/off-shore delivery model.
Accounting Lease Automation Data Management Application Support Modern Workplace
→ Property/Portfolio → Lease → Robotic Process → Retrieval and → Application & End- → Microsoft 365
Accounting Administration Automation Movement user Support &
Administration & Administration
→ Fund/Entity → Revenue → Smart Report → Validation and Support
Accounting Processes Development Issue → Microsoft Azure
Management → Integration Support
→ AP/AR Transaction → Periodic Processes → Data Exchange Management
Support (e.g. Service (rfDx) → Data Governance → Digital Advisory
Charge Support → Application Services
→ Utility Bill reconciliations & → Application Training
Processing and tax reports) Development → Data Publications
Validation and Management → Advisory Services
→ Co-tenancy
Analysis & → Intelligent → Procedural
Tracking Document Optimisation
Abstraction
→ Portfolio (rfAbstract)
Abstraction
Differentiators Benefits
→ World-class real estate knowledge, from consulting to delivery → Tailored and cost-effective real estate solutions
→ Knowledge exchange from critical mass of industry specialists → Improved operational performance
→ Real estate-specific expertise in accounting, finance, operations and → Scalable and flexible
technology
→ Predictable and stable delivery
→ Sector-specific solutions using industry leading practices
→ Process definition and transparency
→ Optimal delivery and client experience via hybrid on-/off-shore model
→ Catalyst and guidance for continuous improvement
→ Flexible delivery model that can start small and expand as needed
T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 3Excerpt of our Global Client Footprint
Below is a representative sample of our global client list, from small to the very largest organisations, covering all real estate asset classes.
North America Europe
→ Black Creek → Aberdeen Asset Management → EQT Partners → P3 Logistics Parks
→ Bombardier → Atlas Residential → Grainger → Patrizia >450 Clients Served
→ Cadillac Fairview → Associated British Foods → iQ Student Accommodation → Primark
Projects & Services
→ CBRE → BNY Mellon → Land Securities Group → Schroders >2,400
→ Equity Residential → CityCon → Mileway → SEGRO Delivered
→ First Capital Realty → Credit Suisse → Micro Focus → Standard Life Investments
→ General Growth Properties → Cromwell Property Group → M7 Real Estate → UBS Asset Management
→ Goldman Sachs → DTZ → Norges Bank IM → Urbanest
→ Harbor Group International
→ Harrison Street Asia
→ Ivanhoé Cambridge
→ JLL → Atrium European Real Estate
→ KB Homes → DragonCor
→ Kimco Realty → GIC
→ Lennar Corporation → Jiaming
→ Link Industrial → MGPA
→ MAA → The Link REIT
→ Macerich → Village House
→ Morguard
→ PGIM Real Estate
→ Pinnacle Middle East & Africa
→ Prologis → ADIA
→ Simon Property Group → TECOM Investments
→ Starwood Capital Group
→ The Hampshire Companies
→ Tishman Speyer Australia
→ Taylor Morrison
→ AMP Capital Investors
→ Charter Hall
Central & South America → Lend Lease Group
→ QIC Real Estate
→ Kimco Realty RF Office Locations Project / Service Locations
→ Vicinity Centres
→ Haus
Additional Representative Global Clients (2 or more Continents)
→ Blackstone Group → Gazit-Globe → Invesco
→ Brookfield Properties → Global Logistics Properties → Morgan Stanley Real Estate Investing
→ Cushman & Wakefield → Greystar Real Estate Partners → Nuveen Real Estate
→ Fortress Investment Group → Hines Interests → Walmart
T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 4Operating Model Frame T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 5
Current State – the Data Spaghetti
Real Estate data tries to represent a physical asset, but it often does so imperfectly. Systems that house this data have
deficiencies and each system organises the data differently. Moving data from one system to another compounds the problem,
but system deficiencies and/or data movement are often perceived as the problem.
Investor(s)
Indices Advisors Service Providers
Information
Stakeholders MSCI Investment Consultants Legal Advisors Appraisers
EPRA Tax Advisors Lenders
Administrators
GRESB Auditors Insurance
Investment
Managers
Investment Management Application Stack
Asset Investor
Accounting Research Data Types
Management Relations
Financial
Operational
Information Sustainability
Suppliers
(Property Data Fitness
Managers &
Accountants,
JV Partners, etc.) Poor/Tolerable/Good
T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 6Industry Perspective | Problem Statement
RealFoundations consistently hears clients express the following concerns:
→ Property Managers each send me something different
→ I receive reports/pdfs that are not integrated into my applications
→ Property Managers manage data using different practices and tools that I do not
fully understand
→ I’m not sure if the property information I receive is all correct
→ I do not have a formal process to aggregate, scrub and incorporate property-level
operational data
→ My service providers do not grasp the distinct need I have for data related to their
service provision
“If someone would work with my Information Suppliers to
get timely, relevant and trusted data efficiently into my
team’s tools, I would hire them. “
T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 7Industry Perspective | Hidden Work
Cross-referencing and recalculating supplied data to ensure consistency
Verifying that accounting data is balanced before uploading
Entering and updating asset data into offline spreadsheets
Verifying information requested matches information supplied
Tracking down late reports from Information Suppliers
Clarifying data requests with information suppliers
Searching file directories for historical reports
Converting financial information from a foreign chart to a native chart
Compiling data from multiple sources into a single spreadsheet
Applying business rules to data in order to test for accuracy
Manually entering information supplied as pdf documents
T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 8Current State – Key Features
Fragmented / siloed systems:
→ Loose assembly of technology point solutions
→ Lots of property data still in uncontrolled and inconsistently-formatted spreadsheets on individuals’ laptops or
shared drives
→ Significant recurring human intervention to prepare data and reports
Investment Managers’ single-stack ERP systems:
→ can struggle to operate in the “fringe” markets
→ not all property managers will accept to work on others’ systems
→ Investment Managers may not wish to pay to support Property Managers’ use of their systems
Poor data governance:
→ lack of common definitions / data dictionary
→ lack of data “quality” measurement
→ unclear responsibilities
→ no single version of the truth
Covid challenges:
→ panic to get rent roll data / understand tenant concentration: by sector / brand
→ need for analysis of lease clauses
→ sudden need to work remotely for extended periods
→ the rise of the digital workplace
T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 9Practical Examples
Client A:
→ Issue: A portfolio had been consistently underperforming its benchmark for the past few quarters – the portfolio
manager had strong opinions on the “good” and “bad” properties in the portfolio, but was unable to support
these feelings with hard data
→ Action: Standardising and validating the full data set from all external parties and for all properties enabled the
client to identify these assets that were driving the underperformance
→ Outcome: Perceived “good” assets to “Bad” assets and resulting in a few dispositions. If the ROI on an asset is
difficult to determine based on the data that exists it will be difficult to correctly act as a management team.
Client B:
→ Issue: A client tried to analyse its exposure to different industry sectors and specific tenants, thinking this wasn’t
going to be a problem as they had performed a similar exercise five years previously. However, as there had been
no governance over the collection and validation of data, they could not respond confidently to investor questions
→ Action: A month was spent auditing and standardising tenant and tenant parent names, as well as classification
(SIC / NAICS) codes across their portfolio
→ Outcome: Client can now manage tenant and industry risk at an organisation level, and report on it to investors.
From an Asset Management perspective, future tenants can de-risk cashflow but equally enhance the asset value.
Client C:
→ Issue: A client needed to review the various costs within the service charge, but the categorisation and underlying
data was incomplete
→ Action: Considerable efforts were made to ensure that each supplier to the service charge was in the appropriate
segment and that accurate square foot data was input.
→ Outcome: Analysis of the data highlighted which suppliers were above a benchmark cost per sq ft. For example,
M&E costs for two similar building were 50% higher in one, which could then be reviewed to action or understand.
T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 10The Future & Discussion
Recognition and rigour:
→ Data being recognised as a key enterprise asset
→ More rigorous data governance: roles, responsibilities, transparency, data definitions
→ Investment in robust data movement tools / outsourced services
Outsourcing data movement to specialists:
→ Data management to be more commoditised and more easily ‘bought’
→ Greater pools of expertise can be accessed when data review or management is in-house (rather than built)
→ Utilisation of AI & RPA where currently manual process is utilised
• RF has developed Abstract – an AI-based service using the Abbyy platform
Tangible benefits of better data practice:
→ Companies will be able to define their data outcomes without the investment in platform
→ Experts will be able to aid further outcomes to gain competitive advantage
→ Enhanced flexibility in defining and producing outcomes
Embracing “data fitness” concepts:
→ Accuracy
→ Timeliness
→ Consistency
→ Completeness
→ Conformity
T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 11Contacts
Simon Parsons D A L L AS C H E N NAI
simon.parsons@realfoundations.net 13737 Noel Road
Suite 900
RF Managed Services India Pvt. Ltd.
Regus Chennai Office Centre Pvt. Ltd.
+44 (0)7710 998 917 Dallas, TX 75240 3rd floor, Shyamala Towers,
+1 214 292 7000 No: 136, Arcot Road, Saligramam,
Chennai 600093, Tamil Nadu, India
NEW YORK +91 44 6686 4544
1411 Broadway,
16th Floor HONG KONG
Clive Tydeman New York, NY 10018 Level 27, World Wide House,
+1 212 750 9550 19 Des Voeux Road Central,
clive.tydeman@realfoundations.net Central, Hong Kong
+44 (0)7702 974 338 O R AN G E C O U N TY +852 2810 5200
18565 Jamboree Road
Suite 540 L O N DO N
Irvine, CA 92612 RealFoundations Ltd
+1 949 258 4000 Finsgate
5-7 Cranwood Street
London, EC1V 9EE
+44 (0)20 7740 3260
Registered in England and Wales
Registered Number 05786273
M E L BOUR N E
203-205 Blackburn Road
Mount Waverley VIC 3149
+61 3 9847 6844
S I N GAPO R E
1 Sophia Rd. #05-03
Peace Centre
Singapore (228149)
+65 6550 9776
www.realfoundations.net
T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 12Appendix T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 13
Our Key Industry Differentiators
From the building itself, to the way it’s developed, operated and capitalised, no group understands the inner
workings of the entire real estate ecosystem as well as RealFoundations.
RealFoundations is wholly-focused on the real estate and building industries: we are recognised as a pre-
Focus & eminent provider of professional services and a thought leader in the real estate market. RealFoundations
Experience has >300 experienced full-time professionals across our Management Consulting and Managed Services,
serving both the public and private real estate markets across the globe.
Unlike other consulting organisations who may temporarily assemble a “team” to work with a client,
Teamwork &
RealFoundations experts have worked together for many years, over dozens of engagements, sharing and
Institutional building upon each other’s expertise. When you hire RF, the entire firm of experienced professionals is
Knowledge accountable for the success of your project, not a group of contractors and subcontractors.
We have a unique depth and breadth of real estate system implementation accelerators, including a well-
Templated proven delivery methodology; templated design workbooks; test scripts quick reference guides and training
Accelerators documents that leave our clients with artefacts of lasting value to the operation and future maintenance of
their technology systems, as well as de-risking the initial implementation.
As a Microsoft Silver partner and recognised global leader in digital collaboration for our use of the Microsoft
Work Over 365 ecosystem to collaborate on projects and share knowledge and lessons learned across our entire
Distance enterprise. We work effectively across borders and time-zones, and have delivered a number of system
implementations projects largely or wholly on a virtual basis.
As end-users of systems we implement, our own Managed Services property & corporate accounting and
lease administrations team provide valuable insights into client requirements and optimal system
Managed
configurations. We also frequently provide client helpdesk services for our implementations, providing
Services further experience and incentive to optimise operational efficiencies, which are in turn fed back to our
consulting teams.
T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 14Industry Perspective | Data is an Asset
We believe an organisation’s data is one of its most important assets. Further, we believe that the health and
success of real estate organisations directly correlates to the effort and investment in data; our experience has
solidified this belief. Some of our additional points of view:
Accurate, consistent, timely, relevant and complete information
is essential for top-performing organisations
Data is an ASSET Data management
Better data leads to Defined performance Managed data is Ongoing attention
and competitive requires EFFORT and
better decisions measures are critical situationally adaptable improves data quality
differentiator EXPERTISE
Better data enables better Data deserves to be Data management Performance measures Data fitness is nimble / Consistent, ongoing
decisions, better managed as an asset to requires the right effort, must be explicitly, flexible / situation specific attention to improving
performance, and better optimise its value to the expertise, and technology deliberately defined and - sometimes data data quality can in fact
risk management. enterprise over time. tools; 'easy buttons' do articulated in the pursuit demands precision, other improve data quality over
not actually exist. of high-quality data. times speed and 'close time.
enough' is better.
In Real Estate, there exist three core types of structured data:
Financial Data, Operational Data, and Environmental Data
T h e B u s i n e s s S c h o o l | I m p ro v i n g P ro p e rt y P e rf o rm a n c e | M a y 2 0 2 1 P ro p ri e t a ry & Co n f i d e n t i a l 15You can also read
