Asset Management use of Argus
I've heard asset managers say that they use Argus almost on a daily basis. What do most AM's use it for that they are on it so much?
I know that they have to update models when something changes, and use it to pull reports and valuations, but I feel like that wouldn't take very long once you've got a base model that was built from scratch.
Is there anything else they use it for? I feel like I'm missing something
Thanks in advance!
Based on the most helpful WSO content, asset managers use Argus for several key functions beyond just updating models and pulling reports. Here are some of the primary uses:
Lease Analysis and Input: Asset managers often spend a significant amount of time inputting and analyzing lease data. This includes reading leases and other financial reports to ensure all terms and conditions are accurately reflected in the model.
Scenario Analysis: Argus is used to run various scenarios to understand the impact of different assumptions on property performance. This includes changes in market conditions, rent trends, and capital expenditures.
Valuation and Forecasting: Regularly updating property valuations and forecasting future performance based on current and projected market data is a critical task. This helps in making informed decisions about holding, selling, or refinancing assets.
Reporting and Compliance: Generating detailed reports for internal stakeholders and external investors is another frequent use. These reports often need to comply with specific regulatory or investor requirements.
Sanity Checks: Even when using Excel for detailed modeling, Argus is often used as a sanity check to ensure that all inputs and outputs are consistent and accurate.
Portfolio Management: For those managing multiple assets, Argus helps in consolidating data and providing a comprehensive view of the entire portfolio's performance.
These tasks require continuous updates and adjustments, which explains why asset managers might be on Argus almost daily.
Sources: Real Estate Asset/Portfolio Management Tips and Tools, Real Estate Asset/Portfolio Management Tips and Tools, Is Real Estate "Asset Management" Considered Back Office?, Is asset management underrated?, Real Estate Development Modeling
Well, everything you mention above. But there is also a lot of scenario analysis based on different lease-up assumptions (timing, rent levels, market releasing etc etc), capex plans. I definitely get a ton of adhoc requests wondering what happens to vals or returns under x/y/z scenario that you’ll need to run.
Argus is also effectively a rent roll when you need to quickly pull some lease / tenant or rent stats.
So yes, you’ll spend lots of time in Argus but at the same time I wouldn’t say it’s crazy time consuming either. As you have said, most heavy lifting is done once the base model is set up.
Edit: lol honestly the AI bot answer above is quite good
Thanks for the info! Do you use any other Argus features that are not commonly used by acquisitions analysts, like the chart of accounts, for example?
Have worked at 2 insititutional shops. Argus can also be used as a large accounting system. All the appraisers run their valuations through it (of which Altus, Argus parent affiliate, is the largest appraiser in the US). So as an AM at an LP you oversee the quarterly valuation of the deal which means you live and breathe that valuation Argus. Even for residential.
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