The world has changed rapidly in recent weeks due to the coronavirus (COVID-19) pandemic and prompted both Federal and State governments to enact extraordinary measures. Throughout our 25-year history and through multiple real estate cycles, Westplan has navigated economic downturns and recoveries. We assess risk and market opportunity with great rigor and sensitivity.

Although no one yet knows what the consequences will be, we have to assume that this situation will affect the Westplan portfolio. Unlike traditional investments, multifamily housing cash flow and values do not move in lockstep with publicly traded markets due largely to the underlying, fundamental need for housing. It’s times like these that we are encouraged by the relatively stable nature of our assets over the long term. We will keep you frequently informed on what is going on and what actions we take.

During these times, we will utilize the experience and best practices we have gained in past harsh economic periods. We are monitoring a number of factors for each project in our portfolio closely. For example, we are stress testing the possible consequences of construction delays and lower rental income. Our main focus will continue to be mitigating any possible cash flow concerns.

Regarding our projects currently under construction, there are no delays and capacity issues to report to date, however, our expectation is that this will change. Additionally, our contractors have taken proper safety measures for their personnel.

For the complexes that are currently undergoing leasing, we are in consultation with our local management organizations. Measures have been taken at all complexes to prevent the possible spread of the virus and to ensure the safety of our tenants and staff to the best extent possible. We have closed all amenities and potential tenants are temporarily touring the properties virtually.

Although the near-term outlook is uncertain, our long-term market vision has not changed. For the short-term, we have decided to hold on new investments until the dust has settled and we have a clear picture of the market conditions. We will continue to mitigate risk and continue to persevere through these disruptions.