Almanac Realty Investors

32 Pages·2017·0.4 MB·English

by  Scott H. Malamut

CONFIDENTIAL
Almanac Realty Securities VIII, L.P.
Nebraska Investment Council
March 2018
Disclosure
ThisdocumentisconfidentialandisintendedsolelyfortheinformationofthepersontowhichithasbeendeliveredbyAlmanacRealtyInvestors,LLC("Almanac").Itisnottobereproducedor
transmitted,inwholeorinpart,byanymeans,tothirdparties,ortobeusedforanypurposeotherthanmonitoringorevaluatinganinvestmentinaFund(asdefinedbelow),withouttheprior
writtenconsentofAlmanac.
Eachofthefollowingisa“Fund”,and,together,the“Funds”:AlmanacRealtySecuritiesI,L.P.,AlmanacRealtySecuritiesII,L.P.,AlmanacRealtySecuritiesIII,L.P.,AlmanacRealtySecurities
IV,L.P.,AlmanacRealtySecuritiesV,L.P.,AlmanacRealtySecuritiesVI,L.P.,AlmanacRealtySecuritiesCanadaI,L.P.,andAlmanacRealtySecuritiesVII,L.P.
Notwithstanding the foregoing, eachintended recipient of thisdocument (and eachoftheemployees, representatives orotheragents ofsuch recipient) may disclose toanyand all persons,
without limitation ofany kind, (i) the tax treatment and tax structure of the transactionscontemplated by these materials and (ii) all materials ofany kind (including opinions or other tax
analyses)thatareprovidedtosuchrecipientrelatingtosuchtaxtreatmentandtaxstructure.Forthispurpose,thetaxtreatmentofatransactionisthepurportedorclaimedU.S.Federalincome
tax treatment of the transaction and the tax structure of a transaction is any fact that may be relevant to understanding the purported or claimed U.S. Federal income tax treatment of the
transaction.
Theinformationcontainedhereinisprovidedforinformationalpurposesonly,isnotcomplete,anddoesnotcontaincertainmaterialinformationabouttheFunds,includingimportantdisclosures
relatingtoconflictsofinterestandriskfactorsassociatedwithaninvestmentintheFunds,andissubjecttochangewithoutnotice.Thisdocumentisnotintendedtobe,norshoulditbeconstrued
orusedasanoffertosell,orasolicitationofanyoffertobuy,interestsinanyAlmanacRealtySecuritiesfund.Noofferorsolicitationmaybemadepriortothedeliveryofadefinitiveprivate
placement offering memorandum (the "Memorandum"). In the event of any conflict between information contained herein and information contained in the applicable Memorandum, the
informationintheMemorandumwillcontrolandsupersedetheinformationcontainedherein.Theinformationcontainedhereindoesnottakeintoaccounttheparticularinvestmentobjectivesor
financial circumstances of any specific person who may receive it. The information herein is not intended to provide, and should not be relied upon for, accounting, legal or tax advice or
investmentrecommendations.Youshouldmakeanindependentinvestigationoftheinvestmentdescribedherein,includingconsultingyourtax,legal,accountingorotheradvisorsaboutthe
mattersdiscussedherein.
EachoftheFundsisaclosed-endprivateinvestmentfundthathashelditsfinalclosing.Asaresult,newsubscriptionsforinterestsinthereferencedFundsarenotbeingaccepted.Investmentsin
aFundarespeculativeandinvolveahighdegreeofrisk.InvestmentsinaFundandinvehiclessimilartotheFundsaresuitableinvestmentsonlyforsophisticatedinvestors(i)whodonotrequire
immediateliquidityfortheirinvestmentsand areabletobearthefinancial risks oftheirinvestment foran indefiniteperiodoftime, (ii) forwhom suchan investment doesnot constitutea
completeinvestmentprogramand(iii)whofullyunderstand,arewillingtoassumeandwhohavethefinancialresourcesnecessarytowithstand,therisksinvolvedinaspecializedinvestment
programandtobearthepotentiallossoftheirentireinvestment.Further,suchinvestmentsinvolvesignificantrisksassociatedwiththenatureoftheunderlyinginvestments.Therewillbeno
publicmarketfortheFundinterests,andaninvestmentintheFundissubjecttosignificantrestrictionsontransferabilityandresale,including,withoutlimitation,undertheSecuritiesActof1933,
asamended,andtheapplicablelawsofanycountry,stateorotherjurisdiction,pursuanttoregistrationorexemptiontherefrom.
Almanacbelievestheinformationcontainedinthisdocumenttobereliablebutdoesnotwarrantitsaccuracyorcompleteness.Theestimates,investmentstrategies,andviewsexpressedinthis
documentarebaseduponcurrentmarketconditionsand/ordataandinformationprovidedbyunaffiliatedthirdpartiesandaresubjecttochangewithoutnotice.Certaineconomicandmarket
informationcontainedhereinhasbeenobtainedfrompublishedsourcespreparedbyotherparties.Whilesuchsourcesarebelievedtobereliable,neithertheFund,Almanac,northeirrespective
affiliates assume any responsibility for the accuracy or completeness of such information. Neither delivery of this document nor any statement herein should be taken to imply that any
informationcontainedhereiniscorrectasofanytimesubsequenttothedatehereof.
NoguaranteeorrepresentationismadethattheFund'sinvestmentprogram,including,withoutlimitation,theFund'sinvestmentobjectives,diversificationstrategies,orriskmonitoringgoals,
willbe successful, and investment results mayvary substantiallyovertime. Investment losses may occur from timeto time. Nothing hereinisintendedto implythat Almanac'sinvestment
methodologymaybeconsidered"conservative","safe","riskfree"or"riskaverse".PASTPERFORMANCEISNOTINDICATIVENORAGUARANTEEOFFUTURERESULTS.NOASSURANCE
CANBEMADETHATPROFITSWILLBEACHIEVEDORTHATSUBSTANTIALLOSSESWILLNOTBEINCURRED.
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Agenda
Pages
Disclosure i
Executive Summary 2
Historical Performance 3
Team 4
Core Competencies 5
Investment Strategies 6
Almanac Realty Securities VIII, L.P. 8
Almanac Realty Securities VII, L.P. 11
Almanac Realty Securities V, L.P. 13
Conclusion 15
Appendices
Biographies 17
Performance Notes 25
ii
Almanac Executive Summary
Almanac Executive Summary
Almanac Realty Investors (“ARI”)
 Real estate investment manager founded in 1981 as Rothschild Realty
 Partner owned since 2007
 Changed name from RothschildRealty to Almanac Realty Investors, LLC in 2011
 RAUM of $2.6 billion as of September 30, 2017
 A focus on making investments in real estate companies (“entity-level,” “platform,” or “corporate” investments)
in both private and public markets
Almanac Realty Securities (“ARS”) & Almanac Realty Securities Canada (“CARS“)
 Established Almanac Realty Securities (“ARS”) Fund Series in 1996 (formerly known as Five Arrows Realty
Securities)
 Focused investment mandate: private placements of debt and equitycapital into private and public real estate
companies
 22 years; eight funds; $4.8 billion committed for investments across more than 40 companies1
 Attractive absolute, relative and risk-adjusted returns
 12.9% net IRR2since inception (1996): approximately half from current income, half from appreciation as of
September 30, 2017
Almanac Realty Public Securities (“ARPS”)
 New strategy launched in May 2017 focused on investing in publicly traded real estate securities
 ARPS will leverage Almanac’s knowledge, experience, and infrastructure to capture attractive real estate
investment opportunities that persist in public markets
Note: Pleaserefertothe“PerformanceNotes”onpages25-29forimportantinformationregardingdefinedtermsandperformancecalculations.Pastperformanceisnotindicative
offutureresults,andtherecanbenoassurancethatanyAlmanacfundwillachieveratesofreturnorportfoliodiversificationcomparabletotheARSFundseries.
1. Includes ARS I-VII and sidecar vehicles and CARS I. As of 1/16/2018
2. Includes ARS I-VII and not sidecar vehicles or CARS I.
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Almanac Funds Performance
As of September 30, 2017 - Estimated Fair Value
1
Aggregate Index Comparison
Commitments Net Net DPI Citi BB
2 2 3 4 5 6 7
Fund (Investment Period) (in millions) IRRs Multiples Ratio RMS NCREIF S&P 500 Bond
ARS I (1996-1998) $317 15.7% 2.3x 1.9 9.3% 9.8% 7.2% 7.3%
ARS II (1998-1999) $318 14.3% 1.5x 1.5 14.9% 10.5% 0.0% 6.4%
ARS III (1999-2001) $232 9.3% 1.4x 1.4 15.0% 10.2% 4.5% 7.4%
ARS IV (2004-2007) $445 9.4% 1.5x 1.5 7.0% 7.0% 7.0% 7.8%
ARS V (2007-2011) $839 11.7% 1.5x 1.4 11.1% 10.1% 12.8% 7.4%
ARS VI (2011-2016) $819 15.2% 1.4x 0.8 11.5% 10.2% 15.0% 5.5%
ARS VII (2015-2019) $1,264 11.9% 1.2x 0.1 6.8% 7.5% 14.4% 6.8%
Total 12.9% 1.5x 1.2 11.1% 9.6% 7.6% 7.2%
CARS I (2014-2016) C $200 13.1% 1.4x 0.2 6.2% 9.0% 10.3% 5.0%
Total LP distributions of $3.7 billion out of $3.2 billion invested by ARS I-VII8
Sources: NCREIF, Bloomberg.
Note: Please refer to the “Performance Notes” on pages 25-29for corresponding footnotes and other important information regarding defined terms and performance
calculations. Past performance is not indicative of future results, and there can be no assurance that any Almanac fund will achieve rates of return comparable to the
ARS Fund Series or CARS I. Performance information includes both realized and unrealized investments and the actual realized return of unrealized investments may
differ materially from the returns indicated herein.
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Almanac Organizational Structure
Matthew W. D. Pike Justin J. John D. Andrew M.
Kaplan Aloian Hakimian McGurk Silberstein
PARTNERS
Managing
Partner Partner Partner Partner Partner
1990 1988 2005 1981 2009
INVESTMENTS FINANCE & REPORTING LEGAL & COMPLIANCE, PUBLIC
AND INVESTOR SECURITIES
RELATIONS
David K. Kenny K. Scott J. Henry C. Jennifer M. Josh K. Matthew J.
Haltiner Moon Peters Herms Cattier Overbay Wolpert
Chief General
Financial Counsel & Managing Portfolio
Director Director Director Officer CCO Director Manager
2008 2009 2007 2012 2015 2014 2016
Madeline K. Michael H. Joseph M. Michael A. Xiu Zheng Gabrielle M.
SENIOR
Chiavini O’Neill Sacchetti Mitchell Porter
ADVISORS
Vice Vice Accounting
Andrew
President President Controller Supervisor Tax Manager Associate
Batinovich
2013 2014 2012 2013 2016 2017
Senior
Sidney Matthew P. Jason A. Vincent M.
Kanell Marshall Dumont Parente Advisor
2017
Senior
Associate Associate Accountant Accountant Simon R.C.
2017 2015 2012 2015 Wadsworth
Senior
Advisor
2012
Note: Years correspond to date of initial hiring by ARI, its predecessors and/or its affiliates. Senior advisors are consultants, not full-time employees, of Almanac Realty Investors, LLC.
44
Almanac Core Investment Competencies
Evaluating
Real Estate
Management
Teams
Underwriting
North
Corporate
American
Structures &
Real Estate
Securities
Risk Pricing of
Assessment Investments
& Mitigation & Valuation
Boards &
Corporate
Governance
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Almanac Investment Strategies
FLAGSHIP / VALUE ADD PUBLIC SECURITIES
Almanac Realty Securities Almanac Realty Public Securities
Formed 1996 –ARS I-VII, CARS I 2017 Formation
 22 years; eight funds; $4.8 billion committed for  Value oriented long / short real estate securities
investment across more than 40 companies1 strategy investing primarily in +/-250 real estate
companies publicly listed in North America
 12.9% compounded annual Net IRR2generated in ARS
Fund Series since inception in 1996  Focused on taking advantage of persistent pricing
dislocations available in public markets relative to
 Established, highquality companies
private market real estate values
 Experienced management teams
 Detailed underwriting process with a focus on capital
 Growth oriented use of proceeds preservation
 Structured / senior securities where possible  Concentrated portfolio targeting 20 –40 total long and
short positions
 Shared control
 Absolute return strategy vs. index oriented strategy
 Existing portfolio of assets typically contributed
 Public market complement to ARS Fund Series
 $100 -$250+ million investment size
 “Founders” offering up to $100 million with reduced
 Additional investment opportunities:
fee structure for early investors
 Start up & early stage
 Potential for long-only sleeves/SMA’s
 Control/take private, operating businesses,
financial/management distress
Note:Allinformationasofdatehereofunlessotherwisenoted.Thisisnotintendedtobeanoffertosell,orasolicitationofanyoffertobuy,interestsinanyAlmanacfundorproduct.Anysuchofferwillonlybemadebymeansofa
confidentialprivateofferingmemorandumorothersimilardocument,whichwillcontainmaterialinformation(includingcertainrisksofinvestinginthefundorproduct)notcontainedinthispresentationandwhichwould
qualifyinitsentiretytheinformationsetforthinthispresentation.Pastperformanceisnotindicativeoffutureresults,andtherecanbenoassurancethatanyAlmanacfundwillachieveratesofreturnorportfolio
diversificationcomparabletotheARSFundSeries.
1. IncludesARSI-VIIandsidecarvehiclesandCARSI.Asof1/16/2018
2. Asof9/30/2017.IncludesARSI-VIIandnotsidecarvehiclesorCARSI.Pleaserefertothe“PerformanceNotes”onpages25-29forimportantinformationregardingdefinedtermsandperformancecalculations.
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Almanac Realty Securities VIII (“ARS VIII”)