2022 Annual Report
2022 turned out to be a year of vastly different halves, but one where CARROLL demonstrated its ability to navigate challenging economic conditions.
Dear Investors, Partners, Employees, and Friends,
As I reflect on 2022, it was a year of two vastly different halves, but one where CARROLL demonstrated its ability to navigate challenging economic conditions. The first half of the year saw a continuation of the heated deal market where we took advantage of generational pricing to successfully exit more than $2 billion in assets and realize proceeds for our investors. The second half of the year brought a focus on managing operations and successfully scouring our Sun Belt markets for solid value-add investments where we were able to lock in positive leverage.
It has also been one of the most consequential years in the Firm’s history as recognized through our record investment results, outstanding senior management additions, and expansion into two new residential real estate verticals: our ground-up development business and CARROLL Credit Strategies (CCS), a platform to provide capital support to other talented sponsors and great properties. While the multifamily industry is facing headwinds driven by rising costs of debt and fears of recession, CARROLL has demonstrated the ability to succeed through a variety of cycles over the past 20 years, and I am confident in the Firm’s ability to do so in 2023 and beyond.
CARROLL is proud to highlight the following milestones in 2022:
• Acquired 14 properties under our value-add strategy with a total purchase price of $1.3 billion representing nearly 5,000 units across five high-growth states: Georgia, Florida, North Carolina, Texas, and Arizona – bringing our inception-to-date acquisition volume to $12.1 billion and nearly 74,000 units.
• Exited 23 properties with a total sales price of $2.2 billion – representing nearly 8,500 units– bringing CARROLL’s inception-to-date disposition volume to $8.8 billion across nearly 49,000 units and realizing a weighted average gross realized return of 29% and multiple on invested equity of 2.2x.
• Raised $343 million of equity with the closing of our latest fund vehicle, Carroll Multifamily Venture VII, more than double of size of our previous vehicle.
• Invested $473 million of equity in 2022, bringing our total equity invested by CARROLL and our partners to more than $4.4 billion.
• Secured 19 third-party property management assignments totaling nearly 2,500 units across Georgia, North Carolina, and Texas.
• Bolstered CARROLL’s Management team with five new executive-level hires – Rob Lester, Rob Gayle, Franco Minton, Stephen Hendrix, Sean Griffin, and Jenny Tysver.
• Prioritized giving back to local communities. CARROLL started the year by partnering with Little Free Library to install nearly 100 boxes at our properties across the country. In conjunction with this portfolio-wide initiative to expand literacy, CARROLL teams volunteered more than 2,386 hours to 61 local organizations. To coincide with back-to-school endeavors, CEO Patrick Carroll launched Kicks for Kids, donating $200,000’s worth of sneakers to youth members of Boys & Girls Clubs.
• Formalized its hands-on ESG Committee, which will serve as a review and selection group to further the Firm’s ESG goals and streamline its processes.
• Closed out 2022 with a diversified portfolio of 95 properties representing nearly 30,000 units valued at more than $7.4 billion.
As we enter 2023, I am proud to say that the state of our company is strong, and our future is brighter than ever. CARROLL has elevated to an admired position in our industry, and I believe we are in the early stages of a compounding growth trajectory. We continue to execute on our mission to provide a quality living environment for our residents and generate outstanding investment returns for our investors while maintaining an inclusive workplace for our employees.
Importantly, I believe we are well positioned for this period of higher inflation and rising interest rates, both within our existing portfolio as well as in our ability to make intelligent investments in a time of great uncertainty.
It is with gratitude that I thank the CARROLL team of 750+ employees across the country, as well as our partners and investors who trusted and supported us through these accomplishments. I am proud of what we do at CARROLL, and I look forward to 2023 and adding another successful page to the CARROLL story.
Patrick Carroll, Founder & Chief Executive Officer
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