underperforming asset

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Underperforming Asset

An asset that is not generating an expected or necessary return. While the asset may produce income for the company or person possessing it, the income may not be sufficient and is certainly less than expected. Examples of underperforming assets include loans in which payments are irregular or products that have been inefficiently marketed. Companies with underperforming assets are often candidates for both hostile and friendly takeovers. See also: Nonperforming asset.

underperforming asset

An asset that earns a lower rate of return than it would be capable of earning if it were properly used. A firm with underperforming assets is a prime target for takeover. Compare nonperforming asset.
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By February 2017, Frontier announced an $80 million net loss for the fourth quarter of 2016, largely due to these underperforming assets.
As more and more upscale and luxury hotel owners are disposing underperforming assets, the company is anticipating more hotel property opportunities in the future.
He said: "All our staff have been busy throughout 2017 as buoyant demand for commercial property and plant is encouraging landlords and lenders to dispose of underperforming assets.
Only then we will see underperforming assets and people, recycled and more productively used, and that includes savers.
Only then will we see underperforming assets and people recycled and more productively used, and that includes savers.
Pillarstone advises banks on managing their non-core and underperforming assets.
TESCO has confirmed it is to sell the Giraffe restaurant chain to Harry Ramsden and Fox's Biscuits owner Ranjit Boparan- and offload its Turkish operations as the supermarket continues to dispose of underperforming assets.
VRH is a financial services and management consulting firm focused on energy, strategy, financial management and optimizing the value of underperforming assets.
These underperforming assets are still very well-priced with a great deal of upside potential, versus core real estate assets that have been overbought and overpaid for over the last several years.
While Compass faced unprecedented challenges during our ownership, we firmly believed that an operationally-focused value creation strategy would create a profitable, dynamic business out of the underperforming assets we acquired from a variety of sellers," said Justin Hillenbrand, a partner and co-CEO of Monomoy.
The Aquino administration has revived plans to sell Duty Free stores as part of efforts to streamline the bureaucracy by unloading underperforming assets.
The Company has made important development in separating its core and non-core portfolios and, in the case of the latter, improving the prospects for certain previously underperforming assets that have yet to reach their potential, notably Pilar and C1 Santa Luz.