Real Estate Investment Resolution

WHEREAS, [Your Company Name] ("the Company") recognizes the importance of strategic and prudent investment decisions to maximize returns and achieve long-term financial goals; and

WHEREAS, the Company acknowledges the potential benefits of diversifying its investment portfolio to include real estate assets as a means of capital preservation, income generation, and portfolio growth; and

WHEREAS, the Company's management has conducted a thorough analysis of market conditions, investment opportunities, and risk factors associated with real estate investment; and

WHEREAS, after careful consideration and evaluation of available options, the Company is committed to establishing clear guidelines and objectives for its real estate investment activities;

NOW, THEREFORE, BE IT RESOLVED, that the Board of Directors of [Your Company Name] hereby adopts the following Real Estate Investment Resolution:

1. Investment Objectives:

• The primary objective of the Company's real estate investment activities shall be to generate attractive risk-adjusted returns for its shareholders while maintaining a focus on capital preservation.

• Secondary objectives may include income generation through rental properties, property appreciation, and diversification of the Company's investment portfolio.

2. Investment Strategies:

• Direct ownership of income-producing properties such as residential, commercial, or industrial real estate.

• Indirect ownership through investments in real estate investment trusts (REITs), real estate funds, or other pooled investment vehicles.

• Development or redevelopment projects that offer opportunities for value creation through active management and asset enhancement.

• Investment decisions shall be guided by thorough due diligence, including analysis of market fundamentals, property performance metrics, and risk assessment.

3. Risk Management:

• The Company shall implement robust risk management practices to mitigate potential risks associated with real estate investments.

• Risk management measures may include maintaining adequate liquidity reserves, diversifying investments across different property types and geographic regions, and conducting regular portfolio reviews to assess performance and identify emerging risks.

4. Investment Criteria:

• Market fundamentals: Supply and demand dynamics, economic indicators, and demographic trends.

• Property characteristics: Location, quality, condition, and potential for income growth or appreciation.

• Financial metrics: Cash flow projections, return on investment (ROI), internal rate of return (IRR), and sensitivity analysis to assess downside risk.

5. Portfolio Management:

• The Company shall maintain a disciplined approach to portfolio management, periodically rebalancing its real estate holdings to optimize risk-return profiles.

• Portfolio performance shall be monitored regularly, and adjustments shall be made as necessary to capitalize on emerging opportunities or mitigate portfolio risks.

6. Compliance and Governance:

• All real estate investment activities shall comply with applicable laws, regulations, and internal policies governing investment practices.

• The Board of Directors and senior management shall exercise oversight and governance of the Company's real estate investment activities, ensuring alignment with the Company's overall strategic objectives and risk appetite.

7. Reporting and Accountability:

• The Company shall establish reporting mechanisms to provide regular updates to shareholders and stakeholders on the performance of its real estate investments.

• Key performance indicators (KPIs) shall be established to measure the success of the real estate investment program, including financial metrics, portfolio diversification, and risk-adjusted returns.

• Senior management shall be accountable for the execution of the Company's real estate investment strategy and shall provide periodic reports to the Board of Directors on investment performance and portfolio management activities.

BE IT FURTHER RESOLVED, that this Real Estate Investment Resolution shall remain in effect until modified or rescinded by subsequent action of the Board of Directors.

IN WITNESS WHEREOF, the undersigned, being all of the directors of [Your Company Name], have executed this resolution as of [Date].

[CEO]

[Date]

[Director]

[Date]

[Director]

[Date]

[Director]

[Date]

[Your Company Name]

Board of Directors

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