What is considered an “current asset”?
Stabilized.
“Stabilized” is defined by an asset that has achieved a relatively steady and predictable level of income, typically after a period of development or improvement or what we refer to as the “value-add stage”. This concept is often used in real estate investments, where a stabilized asset indicates a property that has reached a high and sustainable occupancy rate, with its income streams normalized and reliable. For investors, the income generated from such an asset tends to be consistent and predictable, making it easier to forecast returns and manage cash flows.
A “current asset” refers to properties that are currently owned by Matador. These assets will either then fall into two categories, stabilized or value-add.
Value-Add.
When a property is in a "value-add" stage of improvements and undertaking lease renewals at market rates, it is undergoing a strategic process of enhancement to increase its overall value. In this stage, the property is typically improved through renovations, upgrades, or redevelopments, aimed at making it more attractive and functional for tenants. For investors, this stage represents a period of no distributions, as the firm’s strategy aims to increase the property's income potential and its overall market value. Once we have added value and we reach greater than 80% occupancy, we will begin distributions.
