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Investor Communications Plan | International Residential Real Estate Investors Association
Monday January 22nd 2018

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Investor Communications Plan

The business plan should include concepts and  specific execution requirements to assure strong investor communications.  Interestingly, research shows (see “Sway” by  Ori Brafman and Rom Brafman) that investors place inordinate emphasis on communication and attribute fairness and satisfaction very significantly on the quality  of communication.

Strong investor communication is defined as:

  1. Regular contact by leadership with the investors
  2. Regular quantitative information

I recommend that managers can provide:

  1. A monthly  update page available a login on a website,
  2. An email distribution summary of financial results monthly, and
  3. A short audio wav file brief by the manager

The key to these communications is consistent delivery, accuracy, and regularity.

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5 Responses to “Investor Communications Plan”

  1. 062291va says:

    From an investor’s perspective, i just want honesty – don’t need fancy stuff – but the financials, with transparency, trends affecting, real root causes, key bets and key risks, things keeping the enterpreneur/ceo up at night – honestly

    Deborah Mills-Scofield

  2. 062291va says:

    In addition to honesty (very well said, Deborah–that’s the most important thing), it is generally helpful to establish a reporting routine, so that investors know what basic information to expect, and in general when to expect it. Organizing it well, and sticking to the basic outline you’ve established, makes it easier for investors to monitor the info. It sounds like you have set things up this way.
    The other step to take is to ask your actual investors what key info they are relying on, and whether they have any questions that your material isn’t addressing. You shoul try to keep communications lines open. If it’s easy to ask you questions when something comes up then most investors will do that, and this will help tolerance of whatever the issue might be.

    Mary Jennings – LinkedIn

  3. I look forward to reading the other reply’s to this question. “What are the best reports to send out and how often?”

    My Property Management business is in Los Angeles and Santa Monica CA. The owners are currently getting a “12 month P & L” with monthly status letter. Some get monthly checks and some get Quarterly checks.

    - The report is “12 month P & L” with graphs of performance.
    - Status letter is a short review of the current issues like vacancies and bigger maint. items.

    Keith Lambert
    Lambert Investments, Inc.
    Santa Monica CA

  4. Honest, accurate information on a regular basis is a great start. It’s a rough climate out there so sometimes investors need to be educated as to what is happening from a basic to advanced level. Don’t expect investors to be able to read through the lines when communicating with them.

  5. 062291va says:

    I agree with your view on investor communications. I also provide monthly executive summaries with financials and photos. My summaries, includes traffic in leasing office, capital improvements, marketing, upcoming events, etc. I have been very surprised my investors never asked questions or request additional information. I guess that means I am giving enough information. Then again my properties are very stable with very little changes every month. The occupancy is >92% with just minor tweaking in the day to day operations.

    I could see more communication would be need for a value-added property.

    Karen Baggett – from Multifamily Insiders

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