Bill’s End of the Year Letter 2024 | January 2025
I would like to take this opportunity to provide my yearly overview of our business, and views on the economic climate within which we operate. We expected 2024 to continue to present challenges and it has certainly done so, but are happy to report some positive opportunities have come along with it. One of the most significant being that the rate decreases by the Federal Reserve have finally begun – albeit several quarters later than forecasted (or hoped for).
Transaction volume begun a recovery from the low levels of 2023, but still remains rather anemic compared to a few years ago. Integris Real Estate Investments’ parent company, Shopoff Realty Investments, both sold and acquired less than their forecasted activity, but the assets they acquired are already shaping up nicely – of course, performance will depend on market conditions moving forward. Additionally, they have a pipeline of acquisitions and development starts for 2025 that provide a level of optimism they haven’t felt in quite some time.
Shopoff Realty Investments also financed numerous projects during the year and have managed to navigate the choppy waters with success. They owe this to the dedication of their team and the level of skill and professionalism they exhibit.
Additionally, we has managed as a nation to get through another election year and with an arguably lower level of drama than the last few cycles. Our economy is currently standing on solid footing, and we remain hopeful the Fed will achieve the soft landing it has aimed for throughout 2024. We will be monitoring how various policy changes will impact the economy and in turn, the investments we hold, and are focused on how tariffs and labor markets will impact inflation.
I have been disheartened to see that there has been little progress on the wars in Ukraine and the Middle East. Although, the recent ceasefire between Israel and Hezbollah may be the beginning of a larger conversation towards peace, we remain optimistic that a peaceful solution will be forthcoming. Despite this worldwide turbulence, the stock markets are experiencing upward momentum.
In 2025, our team still anticipates seeing opportunities from upcoming debt maturities, as well as projects without capital infusions that will have challenges when refinancing. We continue to monitor and analyze these opportunities daily.
I’m grateful for the opportunity to lead this firm and am proud of our collective efforts, even when they may fall short of our lofty expectations. We have set a solid foundation for our investors and our future, and I look forward to leading this firm for years to come.
This is intended for informational purposes only. The views, thoughts and opinions expressed in this outlook belong solely to the author. This outlook is based on current public information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates and forecasts contained herein are as of the date hereof and are subject to change without prior notification. Statements about the strength of the stock market, company projects, or future opportunities should not be interpreted as guarantees of success or returns. All business and market activities carry inherent risks.
Forward looking statements.
This contains forward-looking statements regarding our company’s business plans, goals, and anticipated performance. These statements are based on current expectations and assumptions, some of which may vary, potentially materially, from actual events. They do not constitute a prediction or guarantee of actual performance. Factors such as market conditions, regulatory changes, and economic trends may impact the company’s results. Risks and uncertainties that may affect performance are further discussed in the relevant Private Placement Memorandum and any supplementary documents. Actual performance may differ materially from the statements made herein.
Prior performance is not indicative of future results. There is no assurance that future projects will achieve comparable results. Alternative investment performance can be volatile and value- added real estate investments may involve additional risks. An investor could lose all or a substantial amount of their investment. There is no assurance that the Partnership objectives will be achieved. Information contained herein is not intended as tax or legal advice and Investors are encouraged to discuss investment decisions with their legal, tax and financial advisors.
The information provided in this update is for informational purposes only and pertains to the activities and projects of Shopoff Realty Investments, L.P. and its affiliates (or “third-parties”) that may be unrelated to any investment offerings by Integris Real Estate Investments.
Forward-looking statements. Certain statements contained herein may constitute “forward-looking statements” and reflect current project goals and anticipated outcomes, which are subject to change based on market conditions and regulatory requirements. Affordable units represent a portion of the overall housing projects and are allocated based on project plans and community needs. Prior performance is not indicative of future results. There is no assurance that future projects will achieve comparable results. This is not an offering to buy or sell any securities. Such offer may only be made through the offerings memorandum to qualified purchasers. Any investment in Shopoff programs involves substantial risks and is suitable only for investors who have no need for liquidity and who can bear the loss of their entire investment. There is no assurance that any strategy will succeed in meeting its investment objectives. The performance of this asset is not indicative of future results of other assets. Securities are offered through Shopoff Securities, Inc., member FINRA/SIPC, 18565 Jamboree Road, Suite 200, Irvine, CA 92612, (949)-417-4307.
