How does each Behringer Harvard-sponsored REIT provide for improvement and other working capital needs and maintain the viability of your asset if cash flow is decreased?
During the acquisition process, the progam will establish estimates for working capital needs throughout the life of each acquired asset. For each property acquisition, upon the closing of the investment in the property, all or a portion of these amounts are reserved from initial capital and placed in an interest-bearing (typically money market) account as reserve for working capital for use during the life of the asset. Additional amounts for these purposes may be reserved or otherwise retained from the cash flow of the asset or from general cash flow. Working capital reserves are adjusted through continual re-projection and annual budgeting processes. If depleted during the course of the asset’s holding period, unless otherwise budgeted, the reserve requirement may be replenished from excess cash flow to provide for the financial endurance of the asset. Working capital reserves are typically utilized for non-operating expenses such as improvements, leasing commissions, and major capi
Related Questions
- How does each Clarke Real Estate-sponsored limited partnerships provide for improvement and other working capital needs and maintain the viability of your asset if cash flow is decreased?
- How does each Behringer Harvard-sponsored REIT provide for improvement and other working capital needs and maintain the viability of your asset if cash flow is decreased?
- Does factoring meet companies’ cash flow needs, and nothing else?
