Thompson Thrift Financial Scorecard
We are happy to share our current financial scorecard with you. These numbers are as of March 31, 2021. This scorecard allows for transparency and will help keep you informed from a financial perspective.
Highlights
- Watermark starts are behind budget as 2 projects (Castle Pines, CO and Port St Lucie, FL) were delayed until June. Watermark has 9 projects totaling 2,486 units that it is targeting to start in 2021. This projection includes three projects (Longmont, CO, 336 units, Venice, FL, 252 units, and Caraopolis, PA, 336 units) that we hope to start in Q4, that have very tight schedules.
- Watermark's YTD net income is behind budget due to the delayed starts of Castle Pines, CO and Port St Lucie, FL. This slippage is partially offset by final development fees received earlier than budgeted on Spring, TX. Our 2021 net income projection has contracted due to additional headcount for our development team, and the loss of property management fees on 2 projects recently sold.
- YTD NOI at our Watermark stabilized properties is currently 4.8% ahead of budget due to occupancies exceeding our budget expectations.
- TTC's YTD volume is 1.5% ahead of budget. Current projection for 2021 is $326M in volume, a $68M (26%) increase from 2020 volume, and $8.9M ahead of budget.
- Additional volume plus meaningful cost controls contributes to TTC's net income running ahead of budget.
- TTC's gross margin (gross profit before operating costs divided by gross revenues) of 8% exceeds our 2021 expectation. This is an area of constant effort as construction costs are up 8% across the country from 2020.
- To date, TTRG starts are ahead of budget, as they started a $3.9M project in NC that was budgeted to start in July. They have the potential to start $85M in projects in 2021, which would be its most productive year ever. The biggest driver to achieving this success is starting a $30M Publix-anchored retail center in Durham, NC in Q4.TTRG's YTD net income is slightly behind budget due to unbudgeted overhead costs and recruiting fees. It is currently on track to achieve its budgeted net income, which would be its strongest annual operating profit. Development fees from starting new projects will be critical to this effort.
- YTD NOI at our stabilized retail properties is 2.9% behind budget, primarily due to timing of property tax reimbursements.
- Seeded promote represents the expected profit to TT from the sale of the properties once they are constructed, leased up, and sold. For clarity, the amounts in each column were "seeded" in the year the property broke ground; the actual promote will be harvested in subsequent years when the projects are completed and sold. 2020 was our best year to date, with over $39M in seeded promote planted. If we are able to start 9 Watermark projects and $85M in TTRG projects, we could seed $52M in promote from 2021 starts.
View the entire scorecard below.