ETRE Financial and Rapid Ratings Form Joint Venture
November 11, 2013
ETRE Financial and Rapid Ratings Form Joint Venture
Tenant Profile Reports Enable In-‐Depth Risk Assessment of Individual and Portfolio Commercial
Real Estate Assets
New York, November 11, 2013 – ETRE Financial, LLC (“ETRE”), a real estate financial services and technology company, today announced as part of its launch, a joint venture with Rapid Ratings International Inc. to enhance the first-‐of-‐its-‐kind exchange-‐traded real estate platform for investing in shares of individual listed commercial real estate assets and portfolio real estate investment trusts (REITs). The ETRE platform will incorporate a tenant profile report that uses Rapid Ratings’ proprietary Financial Health Rating (FHR®) system to evaluate tenants of individual buildings and portfolios, and to provide individual building and portfolio scores.
Rapid Ratings offers automated reporting and a simple, scalable and analytically rigorous way for investors to assess companies or portfolios of companies as potential investments, making the FHR® system a natural fit for the ETRE platform. The system provides a breadth and depth of information on tens of thousands of both public and private companies globally on a common basis.
“One of the biggest challenges in real estate investment is understanding the risks down to the individual tenant level,” said James H. Gellert, Chairman and CEO of Rapid Ratings. “We’re pleased to be working with ETRE on this innovative approach for delivering transparency and value-‐added analytics to the real estate field.”
ETRE seeks to broaden the investment opportunity in commercial real estate through creation of the ETRE Tenant Profile Report (ETPR) score and through a new process for investing in individual commercial real estate assets. To facilitate investment in individual commercial assets, ETRE has introduced the ETPR score to measure risk on a per-‐square-‐foot and per-‐ revenue basis.
“A key factor of the ETPR score will be to improve risk assessment of individual and portfolio real estate as these factors contribute to underlying fundamentals,” said Paul Frischer, ETRE’s co-‐founder and Chief Executive Officer. “As commercial real estate has moved beyond a duration marketplace, the financial strength and composition of a tenant’s profile becomes paramount in the valuation process.”
ETPRs use Rapid Ratings’ quantitative ratings system to produce Tenant Risk Ratings (TRR) and the corresponding ETPR score. A TRR measures a tenant’s financial stability and its overall ability to remain competitive against its global peers, and the ETPR score provides an information benchmark that enables a more well-‐informed investment decision, to improve more accurate risk management.
ETPR scores and Tenant Risk Ratings are expressed on a scale from 0 to 100 employing a transparent, user-‐friendly cardinal measurement system. The rating scale assesses both the absolute level of risk and a company’s relative risk compared to both its peers and its own past performance with significantly greater clarity than an ordinal system.
These performance drivers are based on approximately 30 years of data from more than a dozen countries covering more than 300,000 public and private companies, thereby contributing to very high model stability.
ETRE Tenant Profile Reports are sold individually and as packages. ETPRs are available for over 70 publicly traded REITs constructed based on top listed tenants, and also available for individual properties and custom portfolios at www.etrefinancial.com/store.
About Rapid Ratings
Rapid Ratings is an independent ratings, research and analytics firm that enables financial institutions and corporations to more effectively manage their risk. Using its Financial Health Ratings (FHRs®), Rapid Ratings predicts the financial viability of thousands of public and private companies in more than 70 countries across all industry sectors. The combination of Rapid Ratings’ subscriber-‐paid model and objective, financial-‐based approach results in the most transparent and accurate ratings available. Clients include Fortune 1000 companies, small-‐ to medium-‐sized enterprises (SMEs) and buy-‐ and sell-‐side financial institutions from around the world. More information can be found at rapidratingscom.stage.emagineusa.com.
About ETRE Financial
ETRE Financial, a real estate financial technology company, was founded in 2012 by a team of real estate professionals who sought to bring the benefits of the equities market – including liquidity, transparency and investor accessibility – to the commercial real estate market. ETRE encompasses capital advisory, asset management, trading and credit analysis systems to provide an end-‐to-‐end solution for liquid, transparent and accessible real estate investing in publicly-‐traded REITs and exchange-‐listed single asset commercial real estate properties. To learn more, please visit www.etrefinancial.com
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