How to Determine Asset Health and Performance Through KPIs

Analysis of detailed operational metrics is just one way to assist in determining asset health. The view down below reveals various performance metrics essential to driving key day-to-day decisions for property managers. But asset managers need a picture from 15,000 feet to fully decipher the true fitness of the asset and whether it is tracking true for investors. During a recent webcast, RealPage Senior Vice President Alan James said a typical asset overview may include a universal set of key performance indicators (KPIs) like net operating income, income yields; loan-to-value; debt service coverage; capital expenditures and a performance return like NCREIF. Regardless of the asset type there are common metrics by which you can measure property and portfolio health for real estate. Asset managers and other key stakeholders are always tasked to draw upon a collection of key metrics to compile an effective report card on performance. That’s one approach to making the right assessment. “Individual metrics don’t tell the story, but collectively they do,” James said. Leveraging unique KPIs, investors get more visibility into asset health and function James, who will discuss the subject in May at the National Association of Real Estate Investment Managers (NAREIM) summit in Chicago, believes asset managers can gain greater visibility into the operation of their properties and portfolios through customizable metrics that support asset strategy. RealPage recently rolled out Portfolio Management (RPM), an interactive dashboard that represents a collective, high-level view of KPIs that drive asset performance. The comparison offers an understanding of what’s affecting profitability and return on investment. It’s high-powered on-demand analytics presented through a system of digital gauges and levers that rank KPIs, similar to the company’s Portfolio Asset Management (PAM) platform, for commercial, conventional, affordable, sen...