Value Chain

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Report on Real Estate Industry Chain and Value Chain Activities Within Calloway

Introduction

The purpose of the report is to conduct a value chain analysis of Calloway and its

industry in order to get a better assessment of the organization’s key functions in

terms of satisfying the needs of the tenants and ultimately the shoppers. To end

of this report, we will provide a situational analysis and recommendations to

improve Calloway’s ability meet its tenants’ and shoppers’ needs.

Situational Analysis

Calloway REIT is the largest owner of large-format unenclosed retail properties in

Canada. Its high-quality portfolio represents superior assets in prime locations

across the country. These properties comprise a total of 21.9 million square feet

– including 5.6 million square feet for future developments.

Calloway is led by an experienced senior management team. Under its

leadership, Calloway’s portfolio has grown from 12 to 119 high-quality properties

in just six years. In that same period, total assets have soared from $108.7million

to $4.2 billion, for an impressive increase of 3,758%[1].

Calloway’s Mission

Focused on the ownership and development of exceptional retail properties,

Calloway is home to leading, value-based national retailers. With a work force of

108 dedicated associates, Calloway’s mission is to provide value for its

Unitholders, its tenants and hard-working Canadian consumers[2]

Calloway’s Vision

Calloway remains committed to its vision: design, develop and manage retail

properties for hard-working, value-oriented Canadians, be the landlord of choice

for value-minded retailers and be a vibrant, forward-thinking company with sound

fundamentals – constantly creating value and growth for our loyal Unitholders[3]

Calloway’s Strategic Goals

Own and manage dominant shopping centres which provide our retailers a

platform to reach their customers through:

a) Convenient Locations:
b) Intelligent Designs
c) Desirable Tenant mix

The Value Chain Activities
Real Estate Industry Value ChainValue Chain Activities within Calloway
Primary Activities Support Activities

The above value chain activities are used by Calloway in meeting the strategic

goals set by the Unitholders through its Board of Directors. The chain starts with

Development team assessing the location by using development guidelines such

as market size, anchor trade areas and tenant mix, site acreage, land cost, land

use and approval time, construction period and site to Wal-Mart sq. ft ratio.

Acquisition then decides which buildings are for earnouts or built out. Leasing is

responsible for completion of all documentations with tenants including lease

agreement prior occupancy. Operations are responsible for the overall

maintenance of the property.

The value added activities provided by the chain to customers are convenient

locations which provides shopping convenience and desirable tenant mix that

offers low cost.

Role of Property Accounting Operations within Value Chain

Our role included but not limited to the following:

Ensure all monthly financial and management reporting required for

project partners/co-owners, related to certain properties, is delivered accurately

and on a timely basis and that all accounting records related to all properties are

kept up to date within guidelines established by generally accepted accounting

principles and by the company and/or its partners/co-owners;

The above key functions are necessary tool to compliment and assist the

Company in complying with Calloway’s mission, vision and core values. Our

timely and accurate preparation of financial statements forms the basis for

quarterly cash distribution to our Unitholders
|Strengths |Weaknesses...
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