The Collective falldown
And the list goes longer and longer (failures, late stage M&A as for Common/Starcity or Habyt/Quartets, equity infusion as Tamburi/DoveVivo). While i'm a big believer in coliving as a living style, the large list of failures can't make you immune to some disbeliefs. Is a sustainable business and what's wrong? I'm convinced that the financial strategy was absolutely risky since the beginning, with really low margin of errors. Those big players have followed an expansion strategy using cash flows to pay down committments and coupons, in a run to expand faster and bigger. Much of them locking rents at the wrong times (look at my post https://lnkd.in/enGSgKhR) or buying expensively while running bigger fixed costs.
BUT is there a double whammy coming?? Are skyrocketing utilities costs adding new pressures on P&L?? I hope that operators won't be obliged to renogotiate prices or reduce community activities and amenities to counterbalance. At the same time i'm wondering why student housing is coping better, maybe because in the hands of names with bigger shoulders?