Viking Capital Newsletter October 2024

In early October, Viking Capital gathered for our quarterly meeting—a deep dive into the goals, roadblocks, and strategies shaping our path to achieving eight deals per year. These growth sessions aren’t just routine updates; they’re high-energy, focused discussions that uncover the challenges each department faces and lay the groundwork for solutions.

It’s these collaborative, forward-thinking sessions that fuel our momentum, driving Viking Capital closer to our ambitious growth goals.

Speaking of growth, Viking Capital nearly doubled our team in 2024.?

Our expanded team means we're poised to achieve more than ever. With each new team member amplifying our expertise, we're set to innovate faster, scale our deal flow, and deliver unparalleled value to our investors.?

This growth marks a powerful step forward, positioning Viking Capital to set new industry standards and reach remarkable milestones together.

Viking Capital has launched a Fund of Fund program for all investors looking to pool capital and create enhanced economics for yourself and your group.

Investing through a Fund of Funds (FOF) model offers several benefits:

• Simplified Investment Process: The program offers a turnkey solution that handles everything from creating investment decks to managing legal documentation, bank accounts, and tax filings, making it easier and faster for investors to raise capital without the hassle of forming their own fund or navigating complex co-GP structures.
• Compliance and Scalability: Viking Capital’s program is fully SEC-compliant, ensuring you avoid broker-dealer law issues. Its scalable structure allows multiple fund-of-fund partners to participate in a single offering, enabling the acquisition of larger, high-quality properties.
• Cost Efficiency: The program is cost-effective, supported by a dedicated back-office team that manages all administrative tasks. By scaling across multiple partners, Viking Capital can offer these services at a lower cost, maximizing your investment potential.

Book a call to learn more about our Fund to Fund program.

As always, if you have any questions, do not hesitate to reach out to our Investor Relations Team.

Onward & Upward,

3 Key Indicators of a Market Shift You Need to Watch

Employment Rates: Rising or falling employment levels can signal a shift in the economy.? Consumer Spending: Changes in how people are spending can hint at market trends and economic health.? Inflation: Watch inflation closely—it can directly impact purchasing power and market dynamics.?

Here's a breakdown of how each candidate's policies could shape the future of housing:

Kamala Harris on Housing

• Housing Supply Goals: Harris aims to build 3 million new homes and rental units by 2029. Her plan involves offering tax incentives and establishing a $40 billion fund to boost housing construction, though specifics on the mix of single-family versus multifamily are unclear.
• Zoning and Development: Proposes removing zoning restrictions and other barriers to multifamily housing, although implementing this federally is complex as zoning is typically local.
• Affordable Housing: Advocates for expanding the Low-Income Housing Tax Credit (LIHTC), which could increase affordable housing availability if passed.
• Rent Control and Algorithm Regulation: Supports certain rent control measures and wants to regulate algorithms that set rental prices, aiming to protect renters from excessive price hikes.
• Tax Policy Changes: Proposes to increase the corporate tax rate, tax carried interest as regular income, limit like-kind (1031) exchanges, and raise capital gains tax for high earners, potentially impacting investment returns in real estate.

Donald Trump on Housing

• Housing Production and Land Use: Trump supports using federal land for housing construction, reducing regulatory hurdles, and streamlining the permitting process to make housing development more efficient.
• Zoning Preferences: While open to increasing housing supply, Trump opposes efforts to end single-family zoning, viewing it as vital to preserving suburban neighborhoods.
• Rent Control Opposition: Strongly against rent control, seeing it as ineffective in increasing housing supply or improving affordability.
• Opportunity Zones for Housing: Indicates an interest in creating a new Opportunity Zone program focused on housing, potentially incentivizing development in underserved areas.
• Tax Policy Continuity: Trump aims to extend or deepen the 2017 Tax Cuts and Jobs Act benefits, including lower corporate tax rates and the pass-through income deduction, which favor real estate businesses.

The Federal Reserve's November 6-7 meeting will likely adjust interest rates depending on election results, which could impact economic outlooks. A decisive win for a candidate favoring fiscal expansion might push for tighter rates, while a stable or pro-market outcome may support a pause.

Apartment Sales Volume is Up in Q2—Here’s Why That’s Great News for Investors!?

Here’s why this trend matters:

• Market Demand & Stability: Higher transaction volumes often indicate a healthy market, as more buyers show confidence in the stability and resilience of multifamily properties. Increased demand creates a more liquid market, making it easier for investors to buy or exit when the time is right.
• Competitive Advantage: As sales rise, so do opportunities to lock in prime properties with appreciating value. Investors who get in during an upward trend often see accelerated returns, especially as demand fuels rent growth and occupancy rates.
• Positive Economic Signal: This uptick shows that multifamily remains a favored asset class for savvy investors, especially amidst economic shifts. With more institutional interest, investment in multifamily continues to offer risk-adjusted returns, ideal for portfolios focused on long-term gains.

Tune into Viking Capital's wealth {un}filtered. – Cutting Through the Noise to Deliver Real Investment Expertise!

• New Episodes This Month: Dive into expert insights, latest market trends, and actionable wealth-building strategies.
• Engaging Interviews: Learn from top industry pros as they break down real-world financial applications.
• Stay Ahead: Get the knowledge to make smart financial moves and keep pace with today’s dynamic market.

Looking to sharpen your investment game or understand complex market shifts?

Submit your questions, listen in, and take charge of your wealth journey this November!

Viking Capital is excited to announce the completion of major renovations at Elevate Huebner Grove, following similar upgrades at Greene and Kings Cove earlier this year. These renovations are part of our ongoing efforts to enhance properties across our portfolio to force appreciation for our exits. Below you can find an awesome video tour of the enhancements made to Kings Cove.

Quarterly reports was distributed last week! Each report has a video from our Director of Asset Management filling you in on all the details of each property performance.

Why is this the case??

• Strong demand: Multifamily demand is at its highest rate since Q3 2021, driven by high interest rates that have limited homeownership for renters.?
• Positive rent trajectory: Rent has increased by 1.1% in the last two quarters, but overtime remains relatively stable compared to other asset classes.
• Favorable demographics: The multifamily market is supported by favorable demographic trends such as domestic migration.
• Dwindling new supply: The number of new units being delivered is expected to be low in 2024.?
• Investor sentiment: A CBRE survey found that nearly half of global investors surveyed planned to increase their multifamily purchasing activity in 2024.

Pressed for time? Catch the highlights from our latest investment webinar on The Townhomes at BlueBonnet Trails. Discover all the key insights and frequently asked questions for our final deal of 2024 in one concise video!