Nearly every major index finished in the red for 2015. Those portfolios exposed to only stocks and bonds had little opportunity for positive returns. Over the same time period, Cottonwood Residential, a private real estate investment trust, was able to increase NAV from $13.80 to $15.39 (+11.5%) while also paying $0.89 (+6.4%) per share in distributions equating to very strong performance for shareholders.
South Coast has been working with Cottonwood Residential since the REIT launched in 2009 to help diversify our clients’ stock and bond portfolios with non-correlating strategies. Cottonwood continues to grow its multifamily portfolio with exceptional assets in strong markets. As of the September 30, 2015, the Company had ownership interests or structured investment interest in 14,508 apartment units and currently manages a total of 21,082 apartment units across 19 states. This meeting will review the success that Cottonwood has delivered to date as well as the potential opportunity moving forward.