Risk Management
Risk management identifies, quantifies, and mitigates investment uncertainties through diversification, hedging, insurance, structural protections, and ongoing monitoring.
| Risk Category | Mitigation Strategy |
| Market risk | Diversification, counter-cyclical timing |
| Credit risk | Tenant screening, deposits, guarantees |
| Interest rate risk | Fixed-rate debt, interest rate hedges |
| Liquidity risk | Maintain reserves, stagger maturities |
| Concentration risk | Limit single-asset, tenant, market exposure |
| Operational risk | Professional management, systems, insurance |
| Leverage risk | Conservative LTV, cash flow coverage |
| Risk Monitoring | Frequency |
| Portfolio performance | Monthly NOI, occupancy, rent collection |
| Leverage metrics | Quarterly LTV, DSCR, debt yield |
| Market conditions | Quarterly supply, demand, cap rate trends |
| Tenant credit | Annual review of major tenants |
| Asset valuations | Annual independent appraisals |
| Stress testing | Annual scenario analysis (rate shocks, recession) |
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