underperforming asset

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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The project is an underperforming asset that is still recovering from the economic downturn and was sold at or below replacement cost with embedded value in the current rent roll.
Assume that Company ABC sells an underperforming asset to the trade company with a carrying or book value of $1 million and a market value of $400,000 for $1 million in trade credits.
Underperforming asset returns, liability values fell 1.
If we presume an underperforming asset profit margin of half the 20% corporate margin shown in Table 1, together with a 5% incidence rate (the percentage of all stores that underperform), the company margin impact would be 0.
Whether it's paying more for an underperforming asset or funding slotting fees, we find values that companies may be missing," says Emmert.
Mentorn has to be the main focus for us at the moment - it was the great underperforming asset at Television Corporation," he said.
Miller is likely to be an underperforming asset for some time," Robert Campagnino, an analyst at Prudential Securities, told the Journal, noting that it's not a business in which Philip Morris is "willing to invest the resources -- in either money or management time -- to fix.
Although this suggests that it may be good to have some gold around, it's pretty thin reasoning for holding a majority of the country's foreign exchange reserves in an underperforming asset.
ICON's corporate barter programs add value to the bottom line: Whether it's paying more for an underperforming asset or funding slotting fees, we find value that companies may be missing.
Since ITT is an underperforming asset, the Hilton team could be the right one to improve the operations,'' said Mark Greenberg, a portfolio manager at Invesco Trust Co.
With this new strategy, CAM seeks to convert portfolio cash holdings, a currently underperforming asset, into a productive risk management and wealth preservation tool.
The Marietta property perfectly fits our investment criteria as it is an underperforming asset.