Deloitte s 2017 Real Estate Industry Update Optimizing opportunity in an ever-changing environment

Transcription

1 Deloitte s 2017 Real Estate Industry Update Optimizing opportunity in an ever-changing environment Los Angeles, CA October 12, 2017

2 Welcome to Deloitte s 2017 Real Estate Industry Update The pace of disruption in our industry continues to increase, influenced by powerful forces including ongoing regulatory change, rapid advancement in technologies, workforce evolution, demographic shifts, and the dynamic influence of global events. Never has it been more important to challenge the way we think about and do business. While some of the problems the pace of change can create are daunting, the opportunities ahead are great. In our preparation for this year s Real Estate & Construction Update which we are again hosting in 12 cities across the United States we have been mindful of the challenges and opportunities these rapidly changing times can present. We hope the agenda of topics and speakers that we ve assembled will better prepare you for successfully managing what lies ahead. Thank you for attending our event. We appreciate your active participation in what promises to be a day of meaningful insights and discussions. Warm regards, Jim Berry US Real Estate & Construction Leader Deloitte & Touche LLP jiberry@deloitte.com Robert T. O Brien Global Real Estate & Construction Leader Deloitte & Touche LLP robrien@deloitte.com

3 Agenda Thursday, October 12 8:00 8:30 a.m. Breakfast and registration 8:30 9:35 a.m. Executive real estate panel 9:35 10:25 a.m. Tax update 10:25 10:40 a.m. Break 10:40 11:30 a.m. Accounting and regulatory update 11:30 12:05 p.m. Technology in construction 12:05 p.m. Closing remarks

4 Panelists Todd is a partner in the Los Angeles Audit practice of Deloitte with more than 25 years of public accounting experience. He leads the Real Estate practice in Los Angeles and serves as the West Region Real Estate Audit leader as well as the co-leader of the National Engineering & Construction Practice. Todd Bauer Partner Deloitte & Touche LLP tbauer@deloitte.com Todd has served clients in various segments of the real estate, construction, and engineering sectors including publicly traded REITs, private equity real estate funds, sovereign wealth funds, publicly traded and private homebuilders, and construction companies. He has also served global clients and has been an advisor to global engagement teams. Services provided include audits of SEC registrants and privately owned entities, buy-side and sell-side due diligence, and purchase price disputes in business combinations as well as involvement in initial public offerings, follow-on offerings, and debt offerings. Todd also has served as the quality reviewer for a variety of private and publicly traded REITs and real estate investment funds. Additionally, his experience includes clients that utilize EB-5 financing. Todd is a member of NAREIT, Urban Land Institute (ULI), and the USC Lusk Center executive committee. Todd serves as treasurer on the advisory board of the ULI s Los Angeles district council. Todd is a CPA in California, New York, and New Jersey. Community service is important to Todd, and he serves on the board of trustees and audit committee of Pediatric Therapy Network for children. Steve is the chief communications officer with Aliso Viejo-based FivePoint Holdings LLC, one of the largest developers of mixed-use, master-planned communities in coastal California with projects in Orange and Los Angeles counties and the San Francisco Bay area. He oversees the company s external and internal communications with a wide spectrum of stakeholders including the media, business and community leaders, partners, and associates. Before joining FivePoint, Steve served as chief revenue officer at Freedom Communications, where he led the print and digital sales operations at its two major Southern California newspapers, the Orange County Register and The Press-Enterprise in the Inland Empire area. Steve Churm Chief Communications Officer FivePoint Holdings LLC Prior to Freedom Communications, Steve founded Churm Media in Churm Media s print publications and websites served 1.5 million readers per month across Southern California prior to its acquisition by Freedom Communications in A former journalist, Steve spent 15 years as a reporter and editor at four California daily newspapers, including the Los Angeles Times and the Orange County Register, covering politics and the environment, among other topics. Steve is a respected leader within the media industry regionally and nationally as well as the Southern California business community. He frequently serves as a speaker on media trends and an emcee at industry and regional events and symposiums. Steve currently serves on the boards of four nonprofts: The Orange County Business Council; The Values Institute; United Way Orange County, and Global Grins.

5 Robert Jernigan Regional Managing Principal Gensler As co-managing principal for the southwest region, Rob is responsible for Gensler offices in Los Angeles, San Diego, Newport Beach, Phoenix, Las Vegas, and Denver; and he also serves on Gensler s board of directors and management committee. Known to peers and clients as an accomplished architect, practice leader, and collaborator, Rob is committed to design innovation, technical quality, and a belief that we are only as good as the people we mentor to succeed us. Rob s technical expertise spans more than 32 million square feet of built projects that have reshaped city landscapes worldwide. A strong proponent of community service, he has shepherded Gensler s gserve program, which encompasses the firm s community outreach activities and socially conscious design efforts. Rob is a fellow of the American Institute of Architects, a member of the Urban Land Institute, and he serves on the boards of the Design Build Institute of America s Southern California chapter and the Los Angeles Business Council. In 2012, the AIA California Council awarded Rob its presidential citation for changing the face of architecture in Los Angeles. Todd Popovich President Popovich Advisors, LLC Todd has more than 20 years of real estate banking experience. His banking career started in 1995 with the Large Corporate Real Estate Group at Bank One (now JP Morgan Chase). Todd was recruited to Wells Fargo in 1999 and joined the Real Estate Banking Group at its headquarters in San Francisco. Upon promotion in 2003, Todd relocated to the Real Estate Banking Group office in Los Angeles and moved into management. Before entering into consulting business for himself in July 2017, Todd was an executive vice president and regional manager in Commercial Real Estate at Wells Fargo. Todd managed real estate originations, underwriting, portfolio management, and general banking services for sponsors based in greater Los Angeles and Hawaii from offices in Century City, downtown Los Angeles, and Honolulu. Todd s region comprised over $7 billion in active loan commitments. While managing the P&L and staff, Todd maintained $20 million of independent credit approval authority. Todd has been directly involved in originating more than $15 billion in loans over his career with a focus on lending to opportunity funds, public and private real estate companies and developers, homebuilders, family offices, REITs, joint venture vehicles, etc. Todd has demonstrated expertise in real estate lending secured by nearly all product types: recourse and nonrecourse lending both senior and mezzanine; syndicated credits, construction, and bridge lending; repositioning finance, perm loans, term loans, revolving lines of credit, unsecured loans both revolving and term; and general banking products and services for real estate operators, sponsors, and investors.

6 Presenters Alex is currently in a management development program in which he assists Deloitte s Real Estate & Construction industry professional practice director. His role includes presenting on emerging real estate and construction accounting issues, developing and communicating Deloitte s industry positions on accounting and auditing matters, and serving as a consultation resource for Deloitte clients and professionals as they work through complex industry accounting issues. Alex is in his eighth year at Deloitte, and prior to his current role, he served on audit engagements of real estate companies in Chicago. He has experience with transactions including initial public offerings, secondary stock and debt offerings, mergers and acquisitions, and spin-offs. Alex Braser Manager Deloitte & Touche LLP abraser@deloitte.com Shagun is a Digital Finance leader at Deloitte Consulting LLP, focused on helping clients with global finance transformation programs and developing innovative solutions on disruptive technologies like blockchain, robotics, etc. He has more than 12 years of experience and has served clients in the real estate, financial services, and high-tech industries. Shagun Goyal Senior Manager Deloitte Consulting LLP shgoyal@deloitte.com Jeff has more than 20 years of experience in the tax policy arena and is currently responsible for communicating emerging tax developments in the US Congress, Internal Revenue Service, Treasury Department, and federal courts to Deloitte and its clients. Jeff oversees the content development of Deloitte s Tax News & Views, as well as thought leadership publications on issues such as the US deficit and prospects for fundamental tax reform. His Capitol Hill experience includes working on tax and budget issues for former US Senator and Senate Finance Committee member Steve Symms, R-Idaho. Jeff Kummer Managing Director Tax Policy Deloitte Tax LLP jkummer@deloitte.com Jeff holds a BS in political science from the University of Idaho and an MBA from Johns Hopkins University.

7 Michelle is a technology principal in Deloitte s Financial Services and Asset Management and Real Estate practice, specializing in the Oracle Enterprise Solutions service line. Michelle brings more than 24 years of consulting experience with a focus on leading large, often global, finance and digital IT transformation programs by leveraging technology. While she has served clients across many industries, her primary focus has been serving engineering and construction and real estate companies, including leaders such as AECOM, Worley Parsons, Jacobs Engineering, MWH, and CBRE. Based in Los Angeles, Michelle recently joined Deloitte from PricewaterhouseCoopers (PwC) where she was a managing director. Michelle earned a BA in economics and accounting from UCLA. Michelle Meisels Principal Deloitte Consulting LLP mmeisels@deloitte.com Dustin is the deputy industry professional practice director (IPPD) for Deloitte s Real Estate & Construction practice. He is a partner in the Chicago office and has more than 15 years of public accounting experience. In his deputy IPPD role, Dustin consults on real estate accounting and auditing matters for both historical cost and fair value reporters, develops and presents technical updates to clients and staff, and reviews numerous financial statements and disclosures. In addition to his deputy IPPD role, he serves as the lead client service partner for some of the largest real estate companies in the United States. J. Dustin Schultz Partner, Deputy Industry Professional Practice Director Deloitte & Touche LLP duschultz@deloitte.com

8 Wyndham (Wyn) is a partner in Deloitte & Touche LLP s national office and serves as the professional practice director for the Real Estate & Construction industry practice. In his role, he assists clients and engagement teams around the country in identifying and resolving real estate and construction-related technical accounting and auditing issues. He also participates in establishing Deloitte s positions on emerging accounting issues. Wyn has more than 25 years of public accounting and transaction experience in initial public offerings, secondary stock and debt offerings, mergers and acquisitions, and spin-off transactions. G. Wyndham Smith, Jr. Partner, Real Estate & Construction Industry Professional Practice Director Deloitte & Touche LLP gesmith@deloitte.com Mark is a principal with the Washington National Tax Group of Deloitte Tax LLP and focuses on tax issues faced by real estate investment trusts (REITs) and other real estate investors. Before joining Deloitte, Mark was a partner at Hunton & Williams LLP, where he represented REITs and investment banks in a large number of REIT initial public offerings and secondary stock offerings. He has also advised targets and acquirers in REIT mergers and acquisitions transactions, and he has advised REITs in tax-deferred and taxable spin-off transactions. In addition to transaction-related engagements, Mark has successfully obtained private letters rulings and closing agreements from the IRS on REIT-related matters. Mark has represented REITs in all asset classes, but has spent a significant portion of his career advising mortgage REITs and hotel REITs. Mark Van Deusen Principal Deloitte Tax LLP Mark also has extensive experience advising clients on partnership tax issues. He has structured UPREIT and downreit tax-deferred contribution transactions, and he advised on the structuring of a number of joint venture transactions. He has also served as the tax advisor to two publicly traded partnerships. Mark speaks regularly on issues related to REITs and investments in real estate, and his articles on REIT taxation have been published in Taxes and the Journal of Real Estate Taxation. Mark is also the program chair for the William & Mary Tax Conference. Mark received his JD from the William & Mary School of Law, where he was a member of the Order of the Coif and was an articles editor of the William & Mary Law Review. He received his BA, magna cum laude, from Washington and Lee University, where he was a member of Phi Beta Kappa.

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