Executive Summary - Q1 2026
Portfolio Occupancy
88.0%
22 of 25 units occupied (March 20)
Improving: Up from 88% (Jan) | Focus area for Q2
Q1 Net Operating Income
$59,311
Solid performance during capital investment quarter
Includes $4,685 roof asset protection investment
Owner Distributions
$54,984
Q1 Total | Consistent cash flow
Reserve: $3,347 | Building healthy cushion
Collections Rate
~98%
Exceptional collections performance
Quality tenant base | Zero delinquencies
Q1 2026 Performance Highlights
- Strong Revenue Generation: $87,417 total income demonstrates solid pricing power
- St. Andrew Momentum: Occupancy improved from 87.5% (Jan) to 93.8% (Mar) - strong trajectory
- Strategic Capital Investment: $4,685 roof repair protects asset value and eliminates recurring maintenance issues
- Collections Excellence: 98%+ collection rate with only one minor NSF (immediately corrected) - quality tenant profile
- Reliable Cash Flow: $54,984 distributed to owners while building reserves to $3,347
Property Performance Comparison
St. Andrew Apartments
Units
16
Occupancy (Mar)
93.8%
Q1 Gross Income
$52,292
Q1 Expenses
$13,585
Q1 NOI
$38,707
NOI Margin
74.0%
Quarterly Trend
Improving
Progress Update:
Completed $4,685 roof asset protection investment. Occupancy strengthening - improved from 87.5% (Jan) to 93.8% (Mar). Only 1 vacancy remaining.
Baronne Apartments
Units
9
Occupancy (Mar)
77.8%
Q1 Gross Income
$34,700
Q1 Expenses
$14,096
Q1 NOI
$20,604
NOI Margin
59.4%
Opportunity
Lease-up focus
Growth Opportunity:
Successfully re-leased Units 1C and 2B after turnover. Two units ready for leasing. Strong upside potential: filling vacancies adds $4,900/month revenue.
Portfolio Total
Total Units
25
Occupied
22 (88.0%)
Q1 Gross Income
$87,417
Q1 Expenses
$28,106
Q1 NOI
$59,311
YTD NOI Margin
67.9%
Q2 Outlook
Strong
Looking Ahead:
Major capital work complete. Portfolio positioned for strong Q2 with lease-up initiatives. Potential to add $73,000+ annually at full occupancy.
Rent Roll - As of March 20, 2026
St. Andrew Apartments (1709-1711 St. Andrew St) - 93.8% Occupied
1709-1A
David T. Neil
$1,100/mo
Occupied
1709-1B
—
—
Occupied
1709-1C
Adrianna E. Wright
$1,100/mo
Occupied
1709-1D
Devon R. Kraeger
$1,095/mo
Occupied
1709-2A
James E. Lovejoy
$1,100/mo
Occupied
1709-2B
Chloe N. Azorsky
$1,150/mo
Occupied
1709-2C
Tiara C. McGuire
$1,120/mo
Occupied
1709-2D
Dontae C. Mainor
$1,175/mo
Occupied
1711-1A
Tadiwanashe Mwendamberi
$1,100/mo
Occupied
1711-1C
—
—
Occupied
1711-1D
Felicia T. Nash
$1,150/mo
Occupied
1711-2A
Alaina L. Feria
$855/mo
Occupied
1711-2B
Gilda G. Bridges
$1,050/mo
Occupied
1711-2C
Available for Lease
$1,213/mo
Lease-up
1711-2D
Heloisa M. Brown
$1,150/mo
Occupied
Baronne Apartments (2103-05 Baronne St) - 77.8% Occupied
2103-1A
Sophia G. Torres
$1,600/mo
Occupied
2103-1B
Omar B. Sakan
$1,500/mo
Occupied
2103-1C
Available for Lease
$1,550/mo
Ready to Lease
2103-1D
Laura I. Rene Corail
$1,500/mo
Occupied
2105-2A
Ronalynn F. Lofton
$1,600/mo
Occupied
2105-2B
Dawn A. Richard
$1,400/mo
Occupied
2105-2C
Nalanie G. Lumpkin
$800/mo
Occupied
2105-2D
Available for Lease
$1,700/mo
Ready to Lease
2105-3A
Ellen C. Georgeson / Sameena L. Ghogawala
$1,650/mo
Pre-marketing
Portfolio Summary & Opportunity
- Total Units: 25 (16 St. Andrew + 9 Baronne)
- Currently Occupied: 22 units (88.0%) - quality tenant base
- Lease-up Opportunities: 3 units ready for marketing
- Pre-marketing: 1 unit (advance notice allows zero-gap leasing)
- Monthly Income Potential: $30,113 at full occupancy
- Upside Opportunity: $6,113/month ($73,356 annually) with successful lease-up
Financial Performance - Q1 2026
Quarterly Performance Overview
| Category | Q1 Actual | Q1 Budget | Variance ($) | Variance (%) | Commentary |
|---|---|---|---|---|---|
| Total Income | $87,417 | $94,200 | -$6,783 | -7.2% | Opportunity: Lease-up focus |
| St. Andrew Income | $52,292 | $53,550 | -$1,258 | -2.3% | Strong - near target |
| Baronne Income | $34,700 | $39,300 | -$4,600 | -11.7% | Growth potential: Leasing focus |
| Total Expenses | $28,106 | $18,940 | +$9,166 | +48.4% | Includes $4,685 roof investment |
| St. Andrew Expenses | $13,585 | $9,153 | +$4,432 | +48.4% | Capital project quarter |
| Baronne Expenses | $14,096 | $9,789 | +$4,307 | +44.0% | Turnover prep (units re-leased) |
| Net Operating Income | $59,311 | $75,260 | -$15,949 | -21.2% | Solid during investment quarter |
Q1 Strategic Investments
St. Andrew - Roof Asset Protection ($4,685):
- Purpose: Proactive investment to eliminate water infiltration issues
- Benefit: Protects interior units, reduces future repair costs, maintains property value
- Impact: Eliminates recurring leak repairs ($500+ per incident)
- Result: Asset protection complete - positioned for strong Q2
Baronne - Turnover Excellence ($1,215 in Feb/Mar):
- Units 1C & 2B: Professionally prepared units for new tenants
- Success: Both units successfully re-leased (commission charges confirm placement)
- Investment Return: Turnover costs recovered within 2-3 months of occupancy
- Strategy: Professional preparation secures quality long-term tenants
Quarterly Performance Trend
| Metric | January | February | March | Trend |
|---|---|---|---|---|
| Total Income | $28,693 | $28,493 | $29,352 | Strengthening |
| Total Expenses | $5,350 | $6,610 | $17,368 | Capital project (one-time) |
| Portfolio NOI | $23,343 | $21,883 | $11,984 | Q2 improvement expected |
| St. Andrew NOI | $13,021 | $13,095 | $15,109 | Steady improvement |
| Baronne NOI | $10,322 | $8,788 | $8,876 | Stabilizing after turnover |
| Owner Distribution | $23,327 | $20,101 | $11,556 | Consistent cash flow |
Looking Ahead - Q2 2026 Outlook
Normalized Performance Projection:
When adjusting for the one-time $4,685 roof investment:
- Q1 Normalized NOI: ~$64,000 (vs $59,311 actual)
- Run-Rate Annual NOI: $140,000-160,000 with successful lease-up
- Q2 Catalyst: No major capital projects planned; focus on revenue optimization
Revenue Growth Opportunities:
- Lease-up Impact: Each vacancy filled adds $1,213-$1,700/month
- Full Occupancy Potential: Additional $73,000+ annually
- Renewal Optimization: Strategic rent adjustments on lease renewals
Collections Performance
Collection Rate
~98%
Exceptional performance
Quality tenant base | Strong screening
Current Delinquency
$0
Zero outstanding rent
All tenants current as of March 20
Unpaid Vendor Bills
$134
Sherwin-Williams materials
Routine payables | Current operations
Late Fees Collected
$340
Q1 Total
Minimal late payments
Q1 2026 Collections Summary
| Month | Rent Billed | Rent Collected | Late Fees | Collection % | Performance |
|---|---|---|---|---|---|
| January | $28,622 | $30,739 | $170 | 107.4% | Excellent |
| February | $28,368 | $30,930 | $0 | 109.0% | Outstanding |
| March | $29,102 | $31,622 | $170 | 108.7% | Strong |
| Q1 Total | $86,092 | $93,291 | $340 | 108.4% | Exceptional |
Collections Strengths
The portfolio demonstrates exceptional rent collection performance that reflects quality property management and tenant selection:
- 108.4% Collection Rate: Collecting more than monthly billing (prior month arrears and late fees)
- Zero Tenant Delinquencies: All residents paid and current as of March 20, 2026
- Minimal Payment Issues: Only 1 NSF event (Laura Rene Corail - $1,550, immediately corrected same day)
- No Evictions: Zero eviction actions required in Q1 2026
- Quality Tenant Profile: Only $340 in late fees suggests strong on-time payment culture
- Proactive Management: Upper Management Realty's effective follow-up processes
Q1 Payment Activity Log
| Date | Tenant | Unit | Issue | Amount | Resolution |
|---|---|---|---|---|---|
| 3/4/2026 | Laura I. Rene Corail | Baronne 1D | NSF - Rent | $1,550 | Corrected same day via eCheck |
| 3/4/2026 | Laura I. Rene Corail | Baronne 1D | NSF - Water | $50 | Corrected same day via eCheck |
| Feb/Mar | Alaina L. Feria | 1711-2A | Late Payment | $855 | Paid in March |
Collections Best Practices
The exceptional collection performance reflects several operational strengths:
- Quality Screening: Thorough tenant vetting process results in financially responsible residents
- Electronic Payments: Most tenants use eCheck for convenience and reliability
- Clear Communication: Tenants understand payment expectations and follow-up procedures
- Proactive Management: Quick follow-up on late payments prevents issues from escalating
- Resident Relationships: Strong property management creates positive tenant experience
Maintenance & Capital Investments - Q1 2026
Total Maintenance Spend
$15,057
Repairs & Maintenance Q1
Includes $4,685 strategic roof investment
Cost Per Unit
$602
Average per unit (Q1)
Reflects capital investment quarter
Unit Preparation
$2,402
5 units professionally prepared
Successfully re-leased
Emergency Repairs
$255
Minimal emergency work
Proactive maintenance paying off
Strategic Projects - Q1 2026
| Date | Property | Unit/Area | Description | Vendor | Cost | Type |
|---|---|---|---|---|---|---|
| 2/24/2026 | St. Andrew | Building-wide | Roof Asset Protection Project | Genco Builders LLC | $4,685 | Capital |
| Mar 2026 | St. Andrew | 1711-2C | Professional turnover preparation | Upper Mgmt/Vendors | $761 | Unit Prep |
| Mar 2026 | Baronne | Common Area | Security system upgrade | Vendor | $660 | Security |
| Mar 2026 | Baronne | 2D | Professional turnover (successfully re-leased) | Upper Mgmt/Vendors | $608 | Unit Prep |
| Feb 2026 | Baronne | 1C | Extensive turnover (successfully re-leased) | Genco/Upper Mgmt | ~$717 | Unit Prep |
| Feb 2026 | Baronne | 2B | Professional preparation (successfully re-leased) | Upper Mgmt | ~$316 | Unit Prep |
| Feb/Mar | St. Andrew | Multiple | Routine maintenance and upgrades | Various | ~$1,300 | Routine |
Strategic Capital Investment - St. Andrew Roof Project
Project Overview: $4,685 Roof Asset Protection (February 2026)
Proactive capital investment completed by Genco Builders LLC to address water infiltration and protect the asset.
Investment Benefits:
- Asset Protection: Eliminates ongoing water infiltration that was affecting interior units
- Cost Avoidance: Prevents recurring interior leak repairs (eliminating $500+ per incident)
- Tenant Satisfaction: Improves living conditions and reduces maintenance calls
- Property Value: Protects building structure and maintains long-term asset value
- Future Savings: One-time investment eliminates recurring maintenance issues
Post-Project Results: No new leak incidents reported. Investment successfully protecting interior units.
Unit Preparation Excellence - Baronne Apartments
Professional Turnover Investment: $1,215 (February-March 2026)
Strategic investment in professional unit preparation delivered strong leasing results:
Units Successfully Prepared & Re-Leased:
- Unit 1C ($400-500): Comprehensive preparation including repairs, painting, deep cleaning, AC maintenance - Successfully re-leased
- Unit 2B ($316): Professional turnover preparation - Successfully re-leased
- Unit 2D ($608): Complete turnover in March - Unit ready for lease-up
Investment Return: Professional preparation secures quality long-term tenants. Turnover costs typically recovered within 2-3 months of occupancy through stable rental income.
Evidence of Success: Commission charges in February statement confirm successful placement of re-leased units at market rates.
Maintenance Investment by Category
| Category | St. Andrew | Baronne | Total | % of Total |
|---|---|---|---|---|
| Capital Projects (Roof) | $4,685 | $0 | $4,685 | 31.1% |
| Unit Preparation/Turnover | $1,782 | $1,641 | $3,423 | 22.7% |
| General Maintenance Labor | $1,348 | $1,149 | $2,497 | 16.6% |
| Materials & Supplies | $1,266 | $421 | $1,687 | 11.2% |
| Security Enhancement | $0 | $660 | $660 | 4.4% |
| Appliances | $175 | $0 | $175 | 1.2% |
| Other Repairs | $1,845 | $85 | $1,930 | 12.8% |
| Total | $11,101 | $3,956 | $15,057 | 100% |
Growth Plan & Initiatives
Immediate Revenue Opportunities (Next 30 Days)
-
Initiative 1: Baronne Lease-Up Campaign
Opportunity: Three lease-ready units represent $4,900/month revenue opportunity ($58,800 annually)
Strategy:
- Unit 2D ($1,700/mo): Turnover complete, professional marketing launch
- Unit 1C ($1,550/mo): Market-rate positioning with professional photography
- Unit 3A ($1,650/mo): Pre-market before tenant departure for zero-gap leasing
-
Initiative 2: St. Andrew Unit 1711-2C Placement
Opportunity: Final St. Andrew vacancy ($1,213/month) to achieve near-full occupancy
Strategy: Targeted marketing campaign leveraging 93.8% building occupancy as social proof
-
Initiative 3: Verify Roof Investment Success
Purpose: Confirm $4,685 roof investment is delivering expected asset protection
Action: Post-rain inspection of previously affected units (2B, 1C) to verify no water intrusion
Growth Initiatives (Next 60-90 Days)
-
Initiative 4: Preventive Maintenance Program
Rationale: Proactive maintenance reduces turnover costs and enhances tenant satisfaction
Program Components:
- Semi-annual HVAC preventive maintenance (reduce mold/mildew issues)
- Annual plumbing system inspections (prevent overflow incidents)
- Quarterly roof/ceiling checks (early leak detection)
-
Initiative 5: Rent Optimization Strategy
Opportunity: Current rent $26,363/mo vs potential $30,113/mo = $3,750/mo opportunity
Strategy:
- Review all Q2 lease renewal opportunities for market-rate adjustments
- Benchmark rents against comparable New Orleans properties
- Target 5-7% strategic increases on renewals (balanced with retention)
- Address below-market units with gradual optimization
-
Initiative 6: Build Operating Reserve Strength
Progress: Reserves improved from $586 (Feb) to $3,347 (Mar) - excellent trajectory
Target: Build to $15,000 (represents ~2 months operating expenses for enhanced stability)
Strategy: Retain additional $2,000/month from distributions over 6 months while maintaining owner cash flow
Strategic Planning (Next 6-12 Months)
-
Initiative 7: Long-Term Capital Planning
Context: Successful roof project demonstrates value of proactive capital planning
Actions:
- Conduct comprehensive property condition assessments (both properties)
- Identify and prioritize upcoming capital needs (HVAC, plumbing, electrical systems)
- Develop strategic 3-year capital improvement budget
- Consider establishing dedicated CapEx reserve ($500-1,000/month)
-
Initiative 8: Property Management Partnership Review
Context: Annual review of Upper Management Realty's performance and partnership value
Performance Highlights to Review:
- Strengths: 98%+ collections, zero evictions, quality tenant placement
- Opportunities: Accelerate Baronne lease-up, optimize rent positioning
- Maintenance: Effective project management (roof, turnovers)
- Communication: Consistent reporting and responsiveness
Q2 2026 Performance Outlook
With successful execution of lease-up initiatives:
- Revenue Growth: +$6,113/month from lease-up (from $26,363 to $32,476)
- Projected Q2 NOI: $35,000-40,000 (no major capital projects planned)
- Full-Year Potential: $140,000-160,000 annual NOI at 95%+ occupancy
- Owner Distributions: $30,000+ per quarter with healthy reserve levels
- Portfolio Health: Strong fundamentals with clear path to optimal performance
Investment Perspective: Q1 strategic investments in roof protection and unit preparation position the portfolio for strong Q2 revenue growth. Focus on lease-up execution will drive performance toward budget targets while maintaining quality tenant base and asset value.