Stoneweg US, LLC

Introducing Volume 2 of Stoneweg US’s HouseView - our commitment to keeping you informed about the latest insights and activity shaping our #sustainable #investment approach. In this issue, our CEO, Patrick Richard, gets into the ‘how’ of achieving #alpha through responsible investing, data-driven accountability, and ESG-centered decision-making. Discover key insights on: - Leveraging sustainability to unlock investment returns - Using data to ensure transparency and maximize impact across the portfolio - Balancing market resilience with long-term growth The HouseView series is crafted to offer investors and industry leaders a transparent view into Stoneweg US’s approach to value creation. Don’t miss the full document - now available on our website. Gain insights into the future of real estate investment with Stoneweg US and learn more from articles authored by our EVP of Asset Management and Development (Samuel Palmer) , CFO (Karen Weller, CA, CPA, CTP) , Head of Capital Markets (Justin Anstey) , and Sr. Director of Acquisitions (Garrett Pisarik). Full House View on our What We Do page Here: https://lnkd.in/eBH6RufF

Take a look at this week's #StonewegMarketMinute ⏱️ with Ryan Smyth: The #FOMC kept its borrowing rate target at 4.25%–4.5%, unchanged since December, signaling ongoing economic uncertainty. Fed Chair Jerome Powell reiterated the commitment to 2% inflation and sub-5% unemployment, stating current conditions don’t justify further rate cuts. However, the Fed still anticipates two cuts later this year, believing inflation is “well-anchored.”   Looking ahead to 2025, the Fed revised its GDP growth forecast from 2.1% to 1.7%, reflecting concerns over trade policy impacts and consumer spending slowdowns. The unemployment rate projection increased from 4.3% to 4.4%, indicating a weakening labor market. Additionally, PCE inflation is now expected to hit 2.7% (up from 2.5%), with core PCE at 2.8%. The Fed now expects to reach its 2% inflation target by 2027.   For #multifamily, uncertainty continues to limit investment activity. Market participants are waiting for clearer economic signals before making moves. Private capital with long-term hold strategies may still deploy #capital, but most buyers remain on the sidelines. Until economic clarity improves, transaction volumes are likely to stay muted.

This week we’re celebrating World Water Day! 🌐🌊 Water is the lifeline of our communities, economies, and investments. That’s why, through our partnership with the U.S. Department of Energy (DOE)’s Water Savings Network, we're improving portfolio water efficiency by 20% by 2033 (from a 2023 baseline). We're making this happen by: ✅ Benchmarking performance using #ENERGYSTAR tools ✅ Engaging our team and partners through education and incentives ✅ Investing in water efficient systems ✅ Providing transparency to our stakeholders In 2024, we completed two property-wide water retrofits in Dallas, cutting water consumption and costs - leading to an average 21% reduction in tenant water bills and generating strong investor returns.   Our efforts are already delivering measurable impact: ✅ Achieved a 2.3% year-over-year water usage reduction portfolio-wide, saving 6,113,510 gallons annually, and keeping us on track through our 10-year target in 2033. ✅ Cost Savings: $150,000 of avoided water expense ✅ Water Use Intensity: 49.7 gallons per square foot, 12 million gallons of water (equivalent to 120 Olympic pools) Every drop saved strengthens our communities, enhances asset value, and secures long-term returns. At Stoneweg US, we’re investing in a future where sustainability and financial resilience go hand in hand. Happy #WorldWaterDay! #multifamily #responsibleinvesting #sustainability

At Stoneweg US, we go beyond the conventional approach to #multifamily development investing - focusing on strategies that are both financially sound and environmentally responsible. Our commitment to #sustainability is about making smarter choices that align with what renters prioritize, optimize resource efficiency, and generate stronger returns for our investors. That’s why we’re taking a closer look at embodied #carbon - an often-overlooked factor in development underwriting that has both financial and environmental implications. Our Managing Director of Sustainability, Thomas S., explores the challenges and financial upside of integrating embodied carbon into our investment strategy: "Embodied carbon is currently an invisible line item in real estate underwriting. It’s there, but nobody sees it, and no one is leveraging it to make a profit." Check out his perspective in the Carbon Leadership Forum's most recent publication. 👇   https://lnkd.in/gD4ewWjD

We know that exceptional resident satisfaction is a key driver of strong and successful #multifamily investments. That’s why we’re proud to share that 13 of our properties have earned the Kingsley Excellence Award, a testament to the high standards we uphold across our portfolio.   Presented by Grace Hill, this recognition is awarded to top-performing properties that exceed industry benchmarks for resident satisfaction, based on 2023-2024 resident feedback from those who matter most - our residents. Prioritizing #resident #satisfaction is a strategic approach to long-term investment performance. When residents feel valued, retention increases, turnover costs decrease, and assets remain financially strong - benefiting both our communities and our investors. Here are our results: ✅ 2024 Overall Satisfaction Score: 3.98 (up from 3.74 in 2023) → Higher satisfaction means stronger retention and long-term lease stability. ✅ All management rating areas exceed the Index by 12.9%+ across 19 assets → Our operational excellence translates into properties that consistently outperform industry standards. ✅ Maintenance satisfaction up 3.4% YoY → Proactive asset management enhances the resident experience and reduces costly repairs. ✅ Management interaction remains a key driver of retention and NOI growth → Strong relationships lead to engaged residents and stronger financial performance. We extend our gratitude to our property management partners - Greystar, RPM Living, RangeWater Real Estate, Hawthorne Residential Partners, and Bozzuto - for your dedication to excellence and driving the strong resident satisfaction that sets our properties apart. 🔗 Learn more about the #KingsleyExcellence Award: https://lnkd.in/ezPzhK_V 🔗 Discover how #StonewegUS is driving value: https://lnkd.in/eBH6RufF

Here's this week's #StonewegMarketMinute with Ryan Smyth: February markets went down, then slightly up yesterday, and down further today for a net decline since inflation prints came out. Treasury yields have continued to decline, signaling caution as we await clearer economic data in the coming months.   In #multifamily, the first half of the year is playing out as expected - slow, with some investors adopting a "flight to quality" strategy. The uncertainty around trade and material costs has led many investors to shift from older vintage assets - built in the 1970s and 1980s - to newer, lower-risk properties. This shift is driven by the need for more predictable returns and less maintenance, especially given the risk of further economic volatility. Newer assets require fewer large capital improvements and tend to hold their value better during downturns; however, there remains a strong buyer pool for well-located C-class assets that demonstrate the potential to deliver alpha.   Given the current uncertainties, both #investors and #residents are looking for stability - investors are prioritizing newer properties with more predictable operational costs, while some residents are upgrading from C-class to B-class properties, seeking value without sacrificing quality. As the landscape evolves, these strategic moves highlight the multifamily sector's #adaptability and long-term #resilience.

At Stoneweg US, we're proving that on-site solar electricity production is now a practical solution that benefits both our residents and investors. At Lake Maggiore Apartments, a 330-unit attainable housing community we recently developed from the ground up, we invested in rooftop solar energy array to reduce long-term operational costs and create a visible example of clean and practical energy production in action. How we did it:  ☀️ First, we focused on an efficient design so the clubhouse would use energy efficiently and maximize solar potential. This included analyzing energy needs for the leasing offices, clubrooms, pool, and the 24/7 fitness center. ☀️ Second, we installed a 78 kW solar system on the clubhouse, designed to generate ~127,000 kWh/year. This system is projected to offset >100% of the clubhouse’s annual energy consumption, and in its first full year, this is expected to save almost $20k in avoided electricity expenses. This generates a >20% IRR over the next 10 years of the investment's 25-year expected lifetime. ☀️ This solar installation at Lake Maggiore is currently the largest in our portfolio, generating 3.4x more energy than any other site we've brought online to date. ☀️ This system is projected to avoid about 52 metric tons of CO₂ emissions each year, equivalent to powering about 12 average U.S. households. Since Lake Maggiore Apartments relies on grid electricity from fossil fuels, this investment is a small but meaningful step toward reducing our carbon footprint and enhancing energy resilience. Why it matters: At Stoneweg, we’re focused on high quality and durable performance when it comes to building communities. By investing in practical solutions like this rooftop solar array, we’re reducing operational costs and enhancing property value in the short as well as long-term. #stpetersburg #tampabay #multifamily #renewableenergy #responsibleinvesting #valueadd #sustainability

We know that exceptional resident satisfaction is a key driver of strong and successful #multifamily investments. That’s why we’re proud to share that 13 of our properties have earned the Kingsley Excellence Award, a testament to the high standards we uphold across our portfolio.   Presented by Grace Hill, this recognition is awarded to top-performing properties that exceed industry benchmarks for resident satisfaction, based on 2023-2024 resident feedback from those who matter most - our residents. Prioritizing #resident #satisfaction is a strategic approach to long-term investment performance. When residents feel valued, retention increases, turnover costs decrease, and assets remain financially strong - benefiting both our communities and our investors. Here are our results: ✅ 2024 Overall Satisfaction Score: 3.98 (up from 3.74 in 2023) → Higher satisfaction means stronger retention and long-term lease stability. ✅ All management rating areas exceed the Index by 12.9%+ across 19 assets → Our operational excellence translates into properties that consistently outperform industry standards. ✅ Maintenance satisfaction up 3.4% YoY → Proactive asset management enhances the resident experience and reduces costly repairs. ✅ Management interaction remains a key driver of retention and NOI growth → Strong relationships lead to engaged residents and stronger financial performance. We extend our gratitude to our property management partners - Greystar, RPM Living, RangeWater Real Estate, Hawthorne Residential Partners, and Bozzuto - for your dedication to excellence and driving the strong resident satisfaction that sets our properties apart. 🔗 Learn more about the #KingsleyExcellence Award: https://lnkd.in/ezPzhK_V 🔗 Discover how #StonewegUS is driving value: https://lnkd.in/eBH6RufF

RELPI | Interests Aligned® Austin ✔️ Another fantastic event filled with insightful discussions and meaningful connections! Grateful for the opportunity to engage with industry leaders and always appreciate Jonathan A. Schein CRE® for fostering such a dynamic networking environment. Looking forward to the next one! #RELPI #Networking #RealEstate

⏱️ Here's this week's #StonewegMarketMinute with Senior Director of Acquisitions, Ryan Smyth: The latest trade war developments are sending ripples through global markets. With tariffs on Canadian, pending tariffs on Mexican goods and increased tariffs on Chinese imports, these countries have responded with their own trade barriers - impacting an estimated $2.2 trillion in annual trade. Market volatility is rising, leaving investors questioning what comes next.   How does this impact multifamily real estate? So far, the sector has remained steady. Occupancy rates are holding, bad debt is stable, and we’re seeing early signs of rent concessions burning off. Bottom line, it is hard to tell the longer-term impacts of what is happening this week. The amount of volatility day in and day out in stocks (the volatility index at 22) and bonds (Treasury movement is ~40 basis points) signals the amount of uncertainty out there from investors. This is a highly fluid situation making it impossible to peg what might happen 24 hours from now, let alone months from now.   How do you see this trade war affecting the real estate sector? Drop your thoughts below. ⬇️