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.
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.
The Marietta property perfectly fits our investment criteria as it is an underperforming asset.
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.
With this new strategy, CAM seeks to convert portfolio cash holdings, a currently underperforming asset, into a productive risk management and wealth preservation tool.
1010 Washington Boulevard is an excellent example of how BPG repositioned an underperforming asset in a growing market and made it succeed," said Al Corr, vice president of BPG who along with Jennifer Bowlby, vice president, was responsible for overseeing the repositioning and leasing of the property.
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.
The success of Spring Valley Marketplace is a prime example of how DLC stabilizes an underperforming asset, and maximizes its value," said Adam Ifshin, president of DLC Management.
In Desert Passage, we identified an underperforming asset with all of the potential to be a leading Las Vegas attraction," said Mr.
This particular property was 40% occupied at the time of acquisition, but was located in a desirable submarket of Oklahoma City and presented the sponsors with an opportunity to turnaround an underperforming asset with substantial upside.
We pay more for underperforming asset dispositions; in return, our clients buy quality goods and services at market prices through ICON.