Welcome to the International Right of Way Association’s Course 703 Real Property Asset Management

1. Welcome to theInternational Right of Way Association’sCourse 703Real Property Asset Management 703-PT – Revision 2 – 04.30.07.INT

2. Introductions Who we are… What we do… Where we do it… How long we’ve been doing it… Our goals for the course...

3. Objectives(1)At the conclusion of the course, you will be able to… • Define and understand the differences between property and asset management • Express an understanding of the goalsof asset management

4. Objectives(2)At the conclusion of the course, you will be able to… • Identify the needs and prerequisites of a successful asset management program • Develop and implement an asset management program

5. Housekeeping

6. Schedule (1) 8:00 - 8:30Introductions, Etc. 8:30 - 9:15 Definitions and Needs 9:15 - 10:15 Key elements of an Asset Management Plan 10:30 - 11:15 Developing an Integrated Asset Management Plan 11:15 - 12:15 Foundations of an Integrated Asset Management Plan

7. Schedule (2) 1:15 - 1:45Portfolio Management 1:45 - 2:30 Determining Needs and Setting Priorities 2:45 - 3:15 Developing the Asset Management Plan 3:15 - 3:45 Measuring Success 3:45 - 4:00 Summary and Review 4:00 - 5:00 Exam

8. Terms (1) Property Managementis a process of maintaining and creating value in real property, which is consistent with the owner’s objectives. Asset Managementis the comprehensive integrated management plan for all realestate assets. It is the optimization of assetsto produce the most productive use.

9. Asset ManagementAsset management is… • Mission driven • System oriented • Long-term in outlook • Customer focused

10. Terms (2) Anintegrated asset management planis a structured process that brings all(assets) parts together into a whole.

11. Terms (3) Asset rationalizationis the process ofdetermining the need for a given asset and the role that asset will play in an organization.

12. Asset Management Plan Goals(1) •Assist in meeting expectations, goalsand targets related to core business activities.

13. Core Businesses (1)

14. Core Businesses (2)

15. Core Businesses (3)

16. Core Businesses (4)

17. Asset Management Plan Goals(2) •Assist in meeting expectations, goalsand targets related to core business activities • Ensure performance at optimum levels •Improve operational capacity • Increase occupancy and reduce expenses

18. Asset Management Plan Goals(3) •Increase revenues • Enhance asset value •Provide flexibility • Increase social or community benefits

19. Terms (4) A portfoliois the collection of like assets.

20. Key Elements(1) •Core business • Table of organization •Accountability

21. Key Elements(2) •Real estate’s role • Communications plan •Teamwork • Directions and goals

22. Prerequisites •Commitment • Proper placement •Performance measures

23. Ingredients (1) •Inventory • Needs assessment •Clear priorities • Accountability footprint

24. Ingredients (2) •Schedule • Plan review •Multiple layers

25. Terms (5) Anintegrated asset management planis a structured process that brings all (assets)parts together into a whole. Asset rationalizationis the process ofdetermining the need for a given asset and the role that asset will play in an organization. A portfoliois the collection of like assets.

26. Terms (6) A property inventoryis a database of the organization’s properties with specific information on each parcel.

27. Inventory Classifications •Operating property (present use) • Future use •Surplus •Other

28. Criteria (1) User friendly and simple Compatible Meaningful cross-references Searchable Increase efficiency

29. Criteria (2) Reduce response time Hard copies Protect original documents Off-site storage Growth Cost effective

30. Another Inventory Classification(1) •Core business uses • Core business related uses

31. Terms (7) Secondary useis organizational acquired property that allows for others to also use, provided that there are no conflicts with the primary use. Secondary useis two or more organizations using jointly acquired property, which provides for shared costs and responsibilities.

32. Another Inventory Classification(2) •Core business uses • Core business related uses •Potential future corebusiness uses • Transitional • No potential future core business uses

33. Terms (8) Stranded assetsare real estate assets with no potential future core business uses.

34. Another Inventory Classification(3) •Core business uses • Core business related uses •Potential future corebusiness uses • Transitionals • No potential future core business use

35. Terms (9) A needs assessmentis a systematicexploration of the way “things” areand the way they should be. Usually, these “things” are associated with organizational performance.

36. Terms (10) A feasibility studyis a preliminary study undertaken before a project starts to ascertain the likelihood of the project’s success, in termsof investor objectives. A financial analysis is an assessment of the viability, stability and profitability of a project.

37. Terms (11) Hurdle or discount rateis an interest rate to convert future payments into present value. Net present valueis the difference between the present value of all the positive cash flows and the present value of all the negative cash flows. Internal rate of returnis the rate that discounts future cash flows to the amount of the original investment.

38. Objectives(1)At the conclusion of the course, you will be able to… • Define and understand the differences between property and asset management • Express an understanding of the goalsof asset management

39. Objectives(2)At the conclusion of the course, you will be able to… • Identify the needs and prerequisites of a successful asset management program • Develop and implement an assetmanagement program

40. Thank you! 703-PT – Revision 2 – 04.30.07.INT