Key Takeaways from Grubb Properties’ Annual Investor Meeting 2024

By Sherry Long, Managing Director, Investor Relations

October 2, 2024

Grubb Properties’ leadership and special guests took to the stage on September 24, 2024, in Charlotte for the company’s flagship annual investor meeting.

The event kicked off with an economic outlook from Mark Vitner, Chief Economist, Piedmont Crescent Capital. Next up was Grubb Properties Chief Investment Officer, Todd Williams, who began his remarks with a review of the company’s investment platform, how it achieves its goal of providing essential housing, and how it drives value in pursuing this aim over the long term.

Todd also recounted the development and investment challenges of the past year and the company’s strategic approach given these conditions. He noted his belief that the marketplace seems to be signaling a nascent recovery in the multifamily asset class and that Grubb Properties is poised to capitalize on the rebound in its pursuit of longer-term results.

Todd then moderated a panel of some of Grubb Properties’ leading senior team members.

Highlights from the lively discussion included:

• Lisa Arthur, Senior Vice President, Multifamily Operations, reported that the company’s recent adoption of an AI chatbot for Link Apartments℠ residents has yielded impressive results by generating answers to frequently asked questions helping free up resident-facing teams to focus on high-value activities.
• Matt Bacon, Vice President, Investments, and Clark Spencer, Managing Director, Investments, updated investors on the performance of existing Link Apartments℠ communities. They also detailed the metrics they use to identify compelling opportunities in today’s marketplace and where they’re finding value among prospective investments.
• Dave Stewart, Senior Vice President, Finance, provided insight into the company’s use of alternative methods of financing given the high cost of debt caused by elevated interest rates. He also explained how the lending environment has begun to thaw, and debt financing costs have declined in response to falling interest rates.

Gary Handel, Managing Partner, Handel Architects, offered an engaging narrative and detailed renderings of the current and future states of Grubb Properties’ New York City developments: Link Apartments℠ QPN, in Long Island City, Queens, and Link Apartments℠ 8 Carlisle in the Financial District of Manhattan.

Over the next several years, these landmark properties together will deliver 879 apartments to one of the most supply-constrained markets in the country. Gary also pointed out that Grubb Properties and Handel Architects have shared values, which are encompassed in his firm’s mission: “In a market economy, the best outcomes arise when enlightened self-interest is harnessed by intelligent public policy to create change. Design can shape these initiatives.” Gary further delighted attendees with Handel’s augmented reality tour of Link Apartments℠ 8 Carlisle.

Grubb Properties CEO Clay Grubb wrapped up the formal portion of the annual investor meeting with his perspective on the current and future investment and development environment. He believes the multifamily asset class’s recent downward cycle will be compressed and followed by a sharp and swift rebound over the next several years. As support for this view, he reminded investors of the critical shortage of rental units for middle-income Americans that is broadly expected to persist over the coming decade. He concluded his remarks by thanking investors for their continued support.

At the post-meeting dinner, Clay moderated an inspiring discussion with Grubb Properties Board of Managers members Gaye Montgomery, Vice President, US Chief Compliance Officer, Philip Morris International, and Jimmy Blackmon, author, professional speaker, leadership consultant and founder of JFB Leadership. Gaye and Jimmy shared intimate and stirring moments from their personal and professional journeys and related them to how they approach their work on the board, as well as how those experiences inform their commitment to improving society at large.

Thanks to all Grubb Properties’ investors for their support.