2024 was a transformative year for Graystoke Capital Partners (“GCP”). We can say with confidence that we are a bigger, faster, stronger company as we begin 2025 with a refined focus on our goals and growth strategy, as well as some exciting wins and outlooks we will discuss in this letter.
The multifamily market at large was relatively stagnant in 2024, with a few large institutional portfolio sales driving overall volume. Graystoke acquired 6 properties, including 2 market-rate and 4 affordable properties. In addition to acquisition financing, we also refinanced 3properties. With our acquisition activities in 2024, our portfolio of owned and operated properties is now at 26 properties across 6 states.
A lot of time and energy over the past year has been focused on rebuilding our property management company under the leadership of Serena Rhuman. We formally rolled out Fortified Property Solutions (“FPS”) at the beginning of 2024 and onboarded 19 properties totaling 1,550 units throughout the year, including market rate and affordable properties. As a combined enterprise, GCP and FPS have grown to over 50 team members and we are excited about the talent and combined vision towards achieving operational excellence.
We are proud to report that within our syndicated/private capital portfolio, we distributed a 10.28% average yield in 2024. By comparison, the average REIT dividend yield was 4.00% and the average dividend yield within the S&P 500 was 1.24%. We just sent out Q4 distributions, and every property within our syndicated/private capital portfolio reported investor distributions similar or higher than the previous quarter. Operational“wins” in 2024 were hard fought, and we are proud of the tireless effort of our team reflected in these distributions.
FPS is essential to our mission of generating wealth off the operation, not speculation, of real estate and we are proud of the organic growth and homegrown talent within the organization. As we enter 2025, the state of FPS gives us confidence to seek new opportunities and continue to growat an accelerated pace.
In 2024, we also focused on growing our affordable housing initiative, formally rolling out Graystoke Social Impact (“GSI”), to focus on the development of affordable housing within our Intermountain West footprint.This initiative is led by Corey Checketts, a veteran in the affordable housing industry. Corey has taken the lead on affordable development opportunities while providing support on affordable preservation opportunities. Last year, we acquired and preserved 267 affordable housing units and were awarded our first allocation of tax credits from the Idaho Housing and Finance Association for anew development in Nampa.
With continued volatility in the capital markets, we have set acquisition goals for 2025 at 8 properties, including 4-6 market rate and 2-4affordable. Geographically, our approach is to focus more on our existing markets, notably Boise, and build scale around our existing operations teams. With our firm and under contract pipeline, we are well on our way of achieving these goals. We also anticipate 2025 will bring strategic disposition opportunities within our portfolio.
In closing this letter, we would like to extend a heartfeltTHANK YOU to all of our stakeholders – residents, team members, investors, legal counsel, lenders, brokers, vendors, family, friends and everyone who hasbeen cheering us on and providing the support that energizes our relentless pursuit to generate positive outcomes for all of you. We have never been more excited about the future of Graystoke!
With Gratitude,
Graye, Joe and Matt
Graystoke Capital Partners