Greystone’s mortgage portfolios are built on a property-by-property basis using a disciplined investment philosophy and process.
Starting with economic, local and regional market analysis, we create a model portfolio with a well-diversified asset mix. The mortgage loan portfolio is then constructed and managed in accordance with Greystone’s disciplined investment process.
Specific potential mortgage investments are selected based upon our established guidelines and models. Our constant monitoring and maintenance of macro and micro-level market information is a key to our ability to manage the loan acquisition process. Financial market capital flows and other macro-level information are also carefully watched.
Micro-level research involves compiling information (sales transactions, vacancy rates, absorption, lease rates, etc.) from Canada’s major cities. Our presence and participation in these markets gives us access to the best information available from mortgage and real estate brokers, asset managers and appraisers. In addition, our mortgage team draws on the market knowledge of Greystone’s fixed income and equity areas, a special perspective not available to most mortgage and real estate investment managers.
Greystone’s evaluation of mortgage investment proposals focuses on the project’s financial structure, estimated cash flows, rate-of-return calculations and the underlying assumptions. Our evaluations also encompass a physical property inspection, a complete property review (including environmental, structural & mechanical) and the credit-worthiness of the borrower and tenants. We assess the experience, ownership and nature of the borrower’s business, review a property valuation conducted by a third-party professional appraiser, and determine the suitability of the investment within the overall diversification plan of the mortgage portfolio.
All decisions are reviewed, analyzed and approved by the Greystone Real Estate and Mortgage Investment Team. Rigorous quantitative and qualitative portfolio management, together with thorough due diligence, helps ensure a “no surprises” environment.