Arbor Ridge Capital

Rental Portfolio Cash Flow & Yield Optimization | 47 Units • 12 Properties • 3 Submarkets

As of

May 15, 2025

North-Star Goal: Increase portfolio NOI margin from 58.3% → 65.0% within 18 months by eliminating top-5 drag properties and re-pricing 40+ units with Rent-to-Market delta >10%.

Portfolio NOI Margin
58.3%
▼ 2.1% vs Q4 '24
Avg Cash-on-Cash Yield
7.2%
▲ 0.3% vs Target 6.9%
Portfolio Vacancy Rate
9.1%
▲ 3.4% vs Apr '25
Avg Rent-to-Market Delta
-8.7%
Upside: $43.2k/yr
Maintenance Expense Ratio
12.4%
▲ 1.8% vs LTM avg
Tenant Retention (TTM)
81%
▲ 4% vs Industry 77%

NOI Margin by Property – Top 12 Assets

Cash-on-Cash Yield vs Target (6.9%)

Vacancy Rate by Submarket (Current)

Lease Expiry Concentration – Next 12 Months (% of Units)

Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Eastside
2%
4%
6%
19%
23%
8%
4%
2%
6%
5%
3%
0%
Tacoma
5%
7%
9%
8%
4%
2%
6%
8%
5%
3%
2%
0%
S.Puget
3%
4%
5%
7%
9%
12%
6%
4%
2%
5%
7%
3%

Critical cluster: 42% of Eastside leases expire Sep–Oct 2025. Rent-to-market delta averaging -15.3% presents re-pricing opportunity.

Rent-to-Market Delta (Top 10 Units)

Unit In-Place Market Delta
Eastside-A3$1,680$2,050-18.0%
Eastside-B2$1,720$2,080-17.3%
Eastside-C1$1,590$1,900-16.3%
Eastside-A1$1,650$1,950-15.4%
Tacoma-F4$1,280$1,480-13.5%
Eastside-D2$1,710$1,950-12.3%
S.Puget-G3$1,190$1,350-11.9%
Tacoma-E1$1,310$1,480-11.5%

Maintenance Expense Ratio by Age Cohort

Property Performance Matrix – Full Portfolio (12 Assets)

Property Units Built NOI Margin CoC Yield Vacancy Rent Delta DSCR Status
Lakeview 8-Unit8201872.4%9.1%0.0%-2.1%2.34Top Performer
Cedar Heights 66201668.9%8.3%0.0%-4.8%2.01Top Performer
Riverside Duplex2201966.2%8.7%0.0%-1.2%1.87Top Performer
Pine Grove 4-Plex4201161.3%7.5%12.5%-6.3%1.62Monitor
Tacoma Central 55200859.7%7.2%0.0%-8.1%1.53Monitor
Eastlake Terrace 33201458.1%6.9%0.0%-15.3%1.71Re-Price Target
Harbor View 66200556.8%6.8%8.3%-9.7%1.48Monitor
Oak Ave 6-Unit6199854.2%6.3%16.7%-10.2%1.18Underperform
Willow Creek 44199552.9%5.9%12.5%-11.5%1.39Underperform
Maple St 4-Plex4197249.2%5.1%25.0%-13.8%1.29Disposition Candidate
Summit Ridge 33198851.7%6.1%0.0%-9.4%1.44Underperform
Birch Lane Duplex2201263.5%7.8%0.0%-5.2%1.81Top Performer

Effective vs Scheduled Gross Income

Scheduled (SGI) $891k
Effective (EGI) $810k
Loss to Vacancy $81k (9.1%)

Submarket Rent Growth (YoY)

Eastside Seattle +8.2%
Tacoma Corridor +4.7%
South Puget Sound +3.1%

Portfolio avg: +5.3%

DSCR Distribution (12 Props)

>2.0x (Excellent) 3 props
1.5–2.0x (Healthy) 5 props
1.25–1.5x (Adequate) 3 props
<1.25x (At Risk) 1 prop

Oak Ave 6-Unit at 1.18x triggered by variable rate increase to 6.7%.

DSCR Stress Test – +200bps Rate Shock Across Portfolio

Scenario assumes +2.0% rate increase on all variable-rate loans. 4 properties fall below 1.25x covenant threshold, requiring refinance or NOI improvement.