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The Right REIT Reporting Solution

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The Right REIT Reporting Solution …

The Right REIT Reporting Solution

Using BusinessObjects Planning and Consolidation (BPC) with Real Estate Investment Trusts (REIT) 

Jennifer Ly, Project Lead for the Enterprise Performance Management Practice at Edgewater Technology, demonstrated how her REIT clients are enhancing their reporting capabilities with SAP BusinessObjects Planning and Consolidation (BPC):

•The ease of reporting that is owned and managed by finance
•The strengths of BPC for complex consolidations
•Solutions and accelerators for XBRL and IFRS
•The seamless integration of BPC with the Microsoft Office Suite

Published in: Business, Economy & Finance

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  • Data Sources – transaction systems, leasing systems, various stakeholders for footnotes ect.Multiple Filings – Multiple traded REITs within an organization and all related filing for each entityOwnership – Complex ownership consolidations including joint ventures and minority interests. Tracks and calculates percent of ownership over time making the entries automatically at the various ownership levelsInternal Resources – Small staff to gather accounting changes, calculate statistical information, and obtain notes from throughout the organizationStatistics - including occupancy, square footage, geography, and property types. Tenant, Lease, and Debt informationComplex – Detailed balance sheet and cash flow including projections and planning
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    • 1. The Right REIT Reporting Solution Using BusinessObjects Planning and Consolidation (BPC) with Real Estate Investment Trusts (REIT) January 27, 2010
    • 2. Agenda Introduction Corporate Overview Challenges in today’s REIT community SAP BusinessObjects Planning and Consolidation (BPC) SAP BPC Live Product Demo Q&A and Contact Information 2 2
    • 3. Corporate Overview Consulting Firm Advisory Services Vertical Services Enterprise Applications Strategic Technical & Data Services Founded in 1992 Headquartered in Wakefield, MA 335 Employees, 238 Consultants * Large North American Footprint Focus on middle and Global 2000 market Publicly Traded (NASDAQ: EDGW) 3 3
    • 4. Challenges of Doing Business Today Global regulations - By 2012, 90% of public accentuating critical data, “ companies will face mandatory, audited public process and execution issues reporting requirements for financial controls, and 50% Sarbanes Oxley and other will face mandatory non- government and regulatory financial reporting (0.8 mandates require companies to be probability).” accountable for the accuracy of their Source: Gartner - 2nd March 2007 - finances” “Audits and Events Drive Governance, Risk and Compliance Spending” by Eid and Caldwell * Audit costs as part of the compliance process are extremely One of every ten public high companies, whether based in Mandated process changes such as the US or abroad” is having XBRL to re-state earnings” Source: CFO Europe.com – “Say Again?”: Volatile Real Estate and Equity April 2007 Market 4 4
    • 5. SAP BusinessObjects Planning and Consolidation Best in Class • Industry leading Excel and Microsoft Office Integration • Packaged Business Process Flows Best in • Strong multidimensional capabilities Class • Guided Action Panes • Finance User owned and managed Ease of • Unified Planning, Consolidations, and Reporting Use • Automated Variance Analysis Most • Structured and Unstructured Data Advanced • Predictive Analytics Capabilities 5 5
    • 6. Unique Needs for REIT Reporting Managing the complex reporting Sample REIT KPI’S requirements for Investors, Regulators, and REIT Management Data sources and inputs scattered throughout the organization Multiple filings within an organization Multifaceted ownerships including joint ventures and minority interests Limited internal resources to oversee all financial reporting needs Additional statistical reporting requirements including industry specific KPI’s Complex financial statements and projections 6 6
    • 7. Customer Success Story KBS Capital Advisors Why SAP Challenges and Opportunities Headquarters: Newport Beach, CA • Manual, labor intensive financial Common centralized database Industry: Real Estate Investment Trust reporting. Automatic consolidation of financial Products and Services: One of the nation's largest buyers of commercial • Replace inefficient spreadsheets with data real estate and structured debt automated environment for reporting Requires minimal IT support investments and forecasting that could be Minimal training requirements Transaction Volume: US$16 billion managed by the finance organization. Leverages full functionality of Employees: 60 Microsoft® suite of products Web Site: www.kbsrealty.com/ Objectives Seamless integration of Planning • Increase data quality and reliability. and Reporting • Shorten reporting cycles, with minimal “Prior to implementing BPC, we managed “ and manually created multiple reports and spreadsheets to meet our financial disruption to existing workflows. • Provide robust, flexible, and scalable Benefits Rapid payback as it was easy to platform for launching future REIT’s. implement and quickly adopted reporting needs. SAP BPC has enabled us to efficiently and accurately pull data Consolidated multiple data sources Implementation Highlights into one environment into Microsoft Excel templates from a single database, allowing us to spend • Completed in less than 1 quarter Increased visibility into REIT less time compiling data and more time between reporting periods operations and reduced time for • Achieved high user engagement and budget and financial close processes utilizing it to manage our business. We look forward to further utilizing the power adoption through the use of of SAP BPC and our relationship with conference room pilots. Edgewater as we grow and adapt.” • Made a material reduction to reporting cycles with minimal IT David Snyder Chief Financial Officer investment 7 7
    • 8. Solutions for Business Performance Optimization Better Control Performance Understand how your strategies will be impacted by risk and adjust plans and expectations FOCUS FOR TODAY’S PRESENTATION: SAP BusinessObjects Planning and accordingly Consolidation Reduce costs and increase working capital by closely monitoring and understanding company spending Increase profitability by gaining insight into your best and worst customers, channels and products Strategy Management Increase Organizational Agility Planning Improve the quality and speed of decisions by Consolidations Profitability and Cost Management closing your books faster and more accurately Spend Analytics Create what-if scenarios and plan versions so you can compare alternatives and act with confidence Understand the impact of changes so you can align operational capacity and support functions with demand Greater Context for Decision Making Empower every stakeholder to communicate, collaborate and execute on a defined plan of action in context and real-time 8 8
    • 9. SAP BusinessObjects Planning and Consolidation Most familiar and easiest to use Enables rapid adoption by leveraging existing Microsoft Office tools (e.g. Excel) and web browsers accessing a central database Financed owned and managed Report and input wizard templates Pre-defined process flows Configurable business process flows guide users and drive process consistency Truly unified solution Single, integrated application reduces maintenance, improves data integrity, and simplifies deployment while enabling flexible planning & consolidation functions 9 9
    • 10. Key Features of SAP Business Objects XBRL Publishing Business Challenges XBRL taxonomy navigation – Quickly search and filter large, complex taxonomies Pressure to implement an XBRL publishing to find tags relevant for your business data solution quickly Mapping – Map taxonomy tags to data using a drag-and-drop mapping Desire for more control and flexibility than environment XBRL outsourcing offers Validation – Use comprehensive validation Limited in-house resources who can work functionality to confirm accuracy and with complex XBRL syntax directly completeness and identify issues Disclosure inclusion – Link to and import management discussions, disclosures, footnotes, and other narratives created in Microsoft Word to XBRL documents Taxonomy extension – Easily extend Add Screenshot from UBMatrix published XBRL taxonomies to include other information Compliance – Be confident that your XBRL documents comply with the business rules of third-party taxonomies 10 10
    • 11. SAP BPC Live Product Demo Report Distribute plans and analyze variances to drive re-forecasts Analyze Consolidate and model multiple scenarios Collect Collaboratively create plans and forecasts Communic ate Communicate top down targets, timelines, and guidelines 11 11
    • 12. Summary Why Now? • XBRL compliance regulations go into effect 6/15/11 • Spreadsheets are error prone and require too much maintenance • Budgeting, Consolidations, and Reporting must be integrated Why SAP BPC? • Benefits of Excel without the downside • Truly maintained by Finance • Easiest to implement, learn, and maintain Why Edgewater? • One of largest implementers of EPM solutions – 800 + deployments • Extensive and experienced team of EPM consultants • Enable client success – excellent client references 12 12
    • 13. Thank You for Joining Us Q&A To schedule a live demonstration, or for more information about Edgewater Technology and our EPM Practice, contact: Jennifer Ly BPC Project Lead 714-514-4600 jly@edgewater.com 13 13