April 2nd, 2020
Caliber Supports Medical Professionals With Complimentary Hotel Stays During COVID-19 Outbreak
March 18th, 2020
Caliber continues to monitor the situation with Coronavirus (COVID-19), and we are taking the necessary steps to protect the health and well-being of our clients, employee’s and partners.
Though our staff will be operating remotely, we are maintaining our regular business hours of 9 am - 5 pm in an effort to maintain a high level of health and safety for our teams and clients during this time of heightened concern. All Caliber services are fully operational and we will work tirelessly to keep you apprised of the state of our shared business as more information surfaces in the coming days and weeks.
Our front desk phones remain in working order and our staff is ready to assist with any potential needs in order to maintain the highest possible level of customer care and service. We are actively adapting to the current climate and doing everything within the scope of our control to not only maintain our high standards, but to come out of this situation in an even stronger and better position in the marketplace.
Please call ahead with confidence, knowing that we are here to serve and support you during this time. 480.295.7600
March 11th, 2020
Managing the Balance Between Risk and Opportunity
Dear Caliber Stakeholders,
As you know, the situation with the novel coronavirus (COVID-19) is rapidly changing. We are reminded every time we check our e-mail or news feeds.
Caliber’s leadership team is being proactive and taking measured action to gather data and feedback from a variety of sources to prepare the company for changes in consumer habits that no doubt are on the horizon, including a sharp decline in travel and heightened volatility and uncertainty.
We built Caliber’s culture and business model on a foundation of change, understanding that change creates both challenges and opportunities, and that our business thrives by quickly adapting and seeking advantages for our customers.
Because of this, we purposefully do not attach ourselves to a specific strategy, asset class or decision, as new information often causes that decision to become irrelevant.
In December 2019, Caliber leadership set a strategy, which was announced during our January 2020 client event, to do the following:
Sell assets that are optimized and take advantage of historic highs in real estate valuations
Refinance assets that are not available for sale to ensure the least expensive capital available is in place
Maintain our low portfolio leverage
Raise significant amounts of capital into our private funds and into our operating business
Deploy those funds in a highly selective manner, favoring projects where we have some form of strategic market advantage, such as free land donated from a city, etc.
Hold cash in our funds and prepare for a 2021 buying opportunity
This strategy has turned out to be a wise one, as Caliber was already positioned to manage the economic turbulence brought on by the Covid-19 situation.
Fundamentally, our approach will continue to follow these steps – selling optimized assets to the extent we are still seeing attractive pricing, being very selective and strategic regarding assets we invest into, focusing on stability, cash flow, low financing costs, and other defensive steps to ensure, first and foremost, we protect client capital.
Caliber has weathered storms before. Having built our business during the wake of the 2008 financial crisis, we always knew some version of a correction would be in our future. This is why we do not force distributions out of a fund or asset until leverage is significantly paid down and cash reserves are high. This is also why we invest in many types of assets, properties that the general public will need and use regardless of market conditions, properties that have a floor in their downside during challenging times.
This is why many of you invested with us – to ensure a portion of your portfolio is not heavily correlated with stocks and bonds. Alternative investments make even more sense now.
We also know how to dance in the rain. Because we built Caliber during the worst financial crisis since The Great Depression, Caliber has the inherent knowledge and deep relationships necessary to take advantage of distressed assets, loans in default, companies forced to liquidate, all the elements and situations that arise in this type of environment. We've seen it before. It is how we generated gross annualized returns in 2009-2012 well in excess of 50 percent per year. It is knowledge that is engrained in the fabric of Caliber and when and if we see opportunities again, we will communicate quickly and directly with all of you to give you access to dance with us.
Our commitment to you going forward is to increase the frequency of communication, share the straight talk that drew you to Caliber in the first place, and also share the wins we continue to see happen in our Company and in our Funds, so that you can understand exactly where you stand with your Caliber relationship.
This communication may come to you in writing and during web events en lieu of large gatherings to protect customers from unnecessary risk like what is happening today. However, rest assured, your Caliber team is still 100 percent accessible and accountable to you and is ready to talk, anytime you need to.
Thank you for your continued support.