Happy Labor Day from Premium Property Trust!

As we celebrate Labor Day, let’s take a moment to honor the hard work, dedication, and contributions of workers everywhere.

This holiday is a reminder of the progress we’ve made together, thanks to the efforts of countless individuals who have shaped our world. We hope you all had a meaningful and restful weekend!

What Makes Us Different?

People often ask what distinguishes Premium Property Trust from other investment opportunities in real estate. Well, there are three major characteristics of our investment fund that make us unique:

  1. We specialize in premium, mixed-use properties. The value of mixed-use is that each “use” elevates the others. That is, when a residential property also has a hospitality component, the residents see that as an amenity to their community.  When an office or retail component is included, they also see the value of the amenity and, often, the value to their workers of being able to live nearby. Of course, the restaurants see the value of having so many customers located so closely to them.  For our investors, that means we are able to out-perform neighboring properties that don’t have this combined value and seek premium lease rates across the board.
  2. Our REIT structure is extremely investor-friendly.  Unlike a traditional real estate fund, a REIT is legally obligated to distribute virtually 100% of its taxable income to its investors. Although we have not officially elected as a REIT yet, we operate PPT as a REIT and have a growth trend in our quarterly distributions, which have occurred over the past two years.
  3. We have a proprietary development model.  Since REIT investments prioritize capital protection and yield, they are – by nature – lower risk and focused on stabilized assets. To provide the opportunity to increase the inventory of mixed-use properties, we leverage a proprietary model that enables PPT to “seed” development efforts, fund them through a traditional syndication offering, then purchase the developed property at stabilization.

We are proud of our accomplishments thus far and excited about our upcoming opportunities.  Often, when inflationary pressures arise, it provides great opportunities for stable companies to take advantage of volatility in the market.  We always welcome the chance to discuss these opportunities with both our current investors and interested future investors.

Please Welcome Rob Shaw to the PPT Team!

Rob Shaw, Director of Business Development
Please extend a warm welcome to Rob Shaw, our newest addition to the Premium Property Trust team. Rob assumed the role of Director of Business Development on August 1st, bringing with him a distinguished 18-year background in ministry. His profound passion for Birmingham, appreciation for sophisticated design, and exceptional talent for establishing meaningful connections with individuals make him an ideal match for Premium Property Trust. We are delighted to have him on board, and we are confident that his expertise will significantly contribute to the growth and success of our organization.

Exciting Updates and Opportunities from Premium Property Trust!

We are thrilled to share some exciting news and developments happening at Premium Property Trust!

As your trusted real estate investment partner, we continue to focus on capital protection and regular yield distributions to ensure your investment thrives.

Here are the latest updates:

  • Capital Protection and Impressive Yield Distributions: We are delighted to announce that the value of our original investors’ positions has increased by over 60%, demonstrating our commitment to safeguarding your capital. Furthermore, our upcoming Q2 distribution will surpass the remarkable milestone of $1 million in real estate income distributed to our investors.
  • Premium Property Development: Unlocking New Opportunities
    In response to growing interest in the development side of the real estate business, we are pleased to inform you that we will be forming a mailing list exclusively for Premium Property Development. This mailing list will provide you with timely updates on new investment opportunities related to acquiring, developing, stabilizing, and selling properties. While this sector entails a more uncertain timeline and higher risk, the potential returns can be significant. What sets our investors apart is their exclusive access to these opportunities before they reach the syndication market.
  • Tech Advancements: AppFolio Investor Portal Continuing our commitment to delivering a seamless investment experience, we are pleased to announce that our investment in technology has expanded. The AppFolio Investor Portal, our cutting-edge online platform, will soon enable you to make capital contributions conveniently and securely. Through the portal, you can monitor the real-time status of your investment, access essential tax documents, and connect your bank to receive distribution payments electronically. We encourage all investors to take advantage of this streamlined feature.
  • The Residences at Alta: Progress and Reservation Updates We are delighted to inform you that our current platform-level development, The Residences at Alta, is progressing splendidly. Recent weeks have seen the installation of new signage, resulting in an impressive influx of interest and reservation inquiries for these luxurious condominiums. To ensure you stay informed about the project’s progress, we are developing a mailing list exclusively for interested parties. We anticipate initiating reservation payments in the near future, giving you the opportunity to secure your place in this exceptional development.

At Premium Property Trust, we remain committed to providing you with excellent investment opportunities, protecting your capital, and delivering superior returns. We value your trust and look forward to sharing further updates and exciting ventures in the future.

If you have any questions or require additional information, please don’t hesitate to contact our dedicated investor relations team!

Happy Memorial Day!

Happy Memorial Day!

On this Memorial Day, we come together to pay tribute to the courageous souls who made the ultimate sacrifice in defense of our nation.

As we enjoy the warmth of family gatherings and the joy of shared laughter, let us never forget the true significance of this day. We honor the heroes who selflessly paved the way for the freedoms we hold dear.

May their legacy inspire us to live with gratitude and uphold the values they fought so valiantly to protect!

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Stay connected with us for the latest updates and content from Premium Property Trust! Follow us on the following channels below and join our community of like-minded individuals. Together, let’s embark on a journey of inspiration, knowledge, and shared experiences.

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Does your portfolio support your retirement income needs?

Does your portfolio support your retirement income needs?

As retirement approaches, one of the biggest concerns for many people is generating income to cover living expenses. For those who have invested in growth and income stocks, it can be tempting to rely on the income generated by these stocks to meet their financial needs. However, as with any investment, there is always a degree of risk involved. If the stock market experiences a downturn, the income generated by these stocks may not be enough to cover living expenses. In this situation, retirees may be forced to sell equity positions in order to generate the income they need. This can be a risky strategy, as it can erode the principal value of their portfolio and leave them with less money to fund their retirement.

One alternative strategy that retirees may consider is moving some of their investments from growth and income stocks into a real estate investment trust (REIT). REITs are companies that own or finance income-producing real estate properties. They offer investors a way to invest in real estate without the hassle of owning and managing physical properties. Instead, investors purchase shares in a REIT, which represents a portion of the ownership in the underlying real estate assets.

There are several reasons why investing in a REIT can be a good strategy for retirees. First, REITs typically offer higher dividend yields than growth and income stocks. This means that retirees can generate a higher level of income from their investments without having to sell equity positions. In addition, REIT dividends are often more stable and predictable than the dividends paid by growth and income stocks. This can be particularly important for retirees who rely on a consistent stream of income to cover their living expenses.

Another advantage of investing in a REIT is that it can provide diversification benefits. Real estate is a different asset class than stocks, and it can provide a source of returns that is not correlated with the stock market. By investing in a REIT, retirees can reduce their exposure to stock market volatility and potentially reduce their overall portfolio risk.

Finally, investing in a REIT can provide retirees with exposure to the potential benefits of real estate ownership without the headaches of being a landlord. REITs are managed by professional management teams who are responsible for the day-to-day operations of the properties. This means that investors can benefit from the potential appreciation of real estate without having to worry about managing tenants, repairs, and maintenance.

Investing in a REIT can be a good strategy for retirees who are looking for a stable source of income and diversification benefits. By moving some of their investments from growth and income stocks into a REIT, retirees can generate higher levels of income without having to sell equity positions. In addition, they can benefit from the stable and predictable dividends offered by REITs and the potential diversification benefits of investing in real estate. Overall, a REIT can be a valuable addition to a retiree’s investment portfolio.

Whether or not you support gun control, do not increase funding for the ATF; here’s why.

Whether or not you support gun control, do not increase funding for the ATF; here’s why.

I saw this article today that the current administration is seeking to make a radical increase in funding for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”).  This is a tragic mistake.

I led a proposal effort to win an important software development contract (over $100M) with this agency several years ago.  When we won, I spoke with the outgoing contractor who shared with me, “You have no idea what you’re getting yourself into.”

In fact, we were the fifth consecutive contractor who got sideways with this agency during execution of the contract, where we were developing new software systems for their agents to manage cases, access investigatory information, and track firearms used during the commission of crimes.

I found the technical leadership at ATF to be the most incompetent, dishonest, and technically inept organization I worked with in over a decade providing critical consulting services with the federal government.

Any additional funding to this organization should be equated to setting hard-earned taxpayer dollars on fire.

Over a year of deceit, and bringing the full force of the Department of Justice legal minds to accuse my firm of failing to deliver on our promises, eventually resulted in an embarrassing settlement (the non-disclosure terms of which I do not remember so I will not provide details). This agreement protected their incompetence from becoming known but deprived their agents of an upgrade to key systems (the fifth failure in a row from as many contractors) sorely needed by their field agents.

The level of their incompetence was staggering.  The lack of principled leadership: embarrassing. The pettiness of their retaliatory efforts: mind boggling. And the corruption of their acquisitions team: disgusting.

The experience eventually drove me out of doing business with the federal government, becoming disillusioned that we could ever provide meaningful technology for the field agents who often put their lives at risk to perform dangerous and complex missions. I urge Congress to reject any material increase in funding to this agency until an independent investigation into the millions spent developing information technology systems there can be radically transformed.  

Without that, you’re just burning more taxpayer funds.

Visualizing New Developments with Virtual Reality

Visualizing New Developments with Virtual Reality

Our partner company, Christopher Architecture & Interiors, has recently helped us develop virtual reality tours of some of the projects we are developing. It is hard to mimic their impact by viewing them in a browser, but when using a Meta Quest 2 VR Headset, you can really feel the scope and dimension of the project in a way that traditional renderings do not provide. If you’re in Birmingham, Alabama sometime, you are welcome to drop by our offices and try it for yourself. For a less immersive look, here are a few of the VR experiences developed so far for our Alta Hotel and Residences project in Vestavia Hills, Alabama:

Inside VR tour of the Alta property (Note the controls on the bottom left to switch through different areas of the hotel)
Outside VR tour of the Alta property (Note the controls on the bottom left to switch through different outside areas of the property)

For some context, you can view the current plans for the project here.

Made money in tech? Why you should consider putting some into a REIT

Made money in tech? Why you should consider putting some into a REIT

According to US News and World Report, the #1 best job in America is a software developer. It joins three other tech jobs in the top ten list for 2023. Over time, these jobs lead to executive responsibility and, often, equity participation in technology companies.

These highly profitable ventures often lead technology professionals to believe that they have the “magic solution” to making money and they commit their capital to other technology ventures. Often these are with friends or past colleagues.

Forget that 9 out of 10 tech startups fail. Fully 75% of venture-backed tech startups fail as well. These are companies that have been vetted by the best minds in the industry, giving consideration to market, marketing, team composition, tech challenges, financing, operations, and legal issues.

But successful technology executives often imagine they can read the tea leaves better than a lay person and put their capital resources into tech that they understand. Most of them will lose money. That is an empirical fact.

Looking at investment allocation trends, middle income investors (< $471K net worth) tend to have most of their investment in retirement accounts and securities, with less than 8% in real estate (excluding their personal residence). Upper income ($471K – $10.3M) adjust the composition to as much as 25% of their portfolio. The ultra rich ($10.3M+) often see real estate exceed 40% of their investment portfolio.

Real estate does not often offer the hockey-stick growth that a tech startup can achieve. But, it also rarely goes to zero, which many of those 90% failed startups do.

A REIT (a Real Estate Investment Trust) offers a great way for a tech executive to diversify some of their capital out of the market. REITs are managed investments that provide a completely passive way for an investor to gain the benefit of real estate ownership without the hassles of becoming a landlord.

When considering a REIT investment, you should consider the vertical niche the REIT prioritizes, the fees assessed by the management company of the REIT, and the past performance of the REIT as related to its plan for the future.

Regardless, any successful tech executive should model what the wealthy and uber-wealthy practice in their portfolios and add more real estate to provide a firm foundation to their portfolios as uncertain market conditions approach.

What’s Going on With REITs? An Investors Guide

What’s Going on With REITs? An Investors Guide

Chris Hill writes about a podcast between Motley Fool analyst Deidre Woollard and Motley Fool contributor Matt Frankel covering a lot of great information about REITs including:

  • How REITs differ from stocks.
  • Publicly traded REITs vs. private REITs.
  • One office REIT that’s evolving.
  • Ways to spot a yield trap.
  • REITs benefiting from e-commerce trends.

Check out the article here, it also contains an embedded recording of the podcast.