Investing for Impact: TTLC and Attainable Housing

I’ve talked many times about the need for new, attainably priced housing in critically undersupplied areas (see past articles here and here). This need for attainable housing is near and dear to our hearts at The True Life Companies and we work diligently to provide solutions to the housing crisis. It’s our objective that through this effort we make a lasting positive impact in the communities we serve. In short, we believe in creating economic opportunity for all by bringing attainable housing solutions to the market place.

While financial performance is important, it’s not the sole purpose of our Company’s mission  - we strive to bring direct societal good to the communities in which we operate. We’re not alone in that way of thinking. Focusing on impact investing with long-term positive social and environmental results is redefining the investment market. New generations are motivated by the idea of using their funds to achieve positive societal change. Investors today have a desire to align their views and values within their portfolios, and to use their wealth to make the world a better place.

According to a recent study by Morgan Stanley, more than 8 in 10 U.S. individual investors (and 9 in 10 Millennial investors) now express interest in sustainable investing – investments that consider both financial return and social/environmental good to bring about social change. And out of the 85% of the general population that does express interest, 52% have already adopted sustainable investing in their portfolio. These numbers are climbing. According to Investopedia, between 2016 and 2018, sustainable, responsible and impact investing grew at more than 38 percent rate, rising from $8.7 trillion in 2016 to $12 trillion in 2018, according to the U.S. Forum for Sustainable and Responsible Investment.

As impact investing moves further mainstream, no longer is it just enough to “do well” in terms of portfolio performance but to also “do good” within your community. For TTLC, positive outcomes are of the utmost importance to our strategy and the impact we deliver for critically needed housing puts our mission front and center.

A huge component of the success of our strategy comes from our due diligence in deploying capital, and underwriting based on sound criteria that creates purposeful partnerships. By working with city councils, municipalities and local communities, we are making a commitment to improve the neighborhoods that we are transforming. We measure our success not just with the level of returns we offer our partners, but with the future number of homes we’re able to generate and the additional benefits or features that come along with those. Benefits like job creation (think construction and new businesses), easy access to transportation hubs (TOD), walking paths and parks, and increased tax revenues and fees that help cities provide greater services.

We believe that as we continue to progress as a society it is our responsibility to give back and provide for future generations.  Creating a new landscape for the future with attainably priced housing and giving back to our communities is what makes our investment strategy so distinct. By repurposing underutilized property in metro markets, we revitalize neighborhoods. This is how residential real estate will be delivered in the future.

By Scott Clark
Chairman & CEO