mcalister media summit 09232014

7/23/2019 Mcalister Media Summit 09232014

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CONFIDENTIAL DO NOT REPRODUCE

McALISTER INVESTMENT PRESENTS:

THE STATE OF HOUSTON

1


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COMPANY HISTORY

McAlister Investment Real Estate is a real estate investment firm focused principally onundeveloped land parcels in the metropolitan markets of Texas and the Sun Belt states.

McAlister Investment Real Estate invests in land parcels in the path of growth for single-family and multi-family residential, retail, and mixed use commercial. McAlister InvestmentReal Estate forms discretionary real estate investment funds, acquiring multiple investmentproperties in order to achieve the benefits of diversification and cash flow to investors.

McAlister Investment Real Estate was formed with partners Jim McAlister, Sr., HydieMcAlister and Paul Connor to pursue advantageous land investment opportunities resultingfrom the real estate crisis. In conjunction with the launch of the McAlister OpportunityFund 2014, McAlister Investment Real Estate hired David Jarvis to serve as Executive VicePresident.

The McAlister Opportunity Fund 2014 is the 8th

in a series of discretionary real estatefunds formed by Jim McAlister, Sr. through the McAlister entities.

McAlister Investment Real Estate and the McAlister family of companies have acquiredover $1 Billion over the past 40+ years. The consistent and sustainable performance of thepartnerships through various economic cycles, reinforces the time-tested strategy ofdiversification, utilizing land as a tactical asset allocation.

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07.10.2014


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Consumer Confidence

& Buying Power

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Consumer Confidence Index Trend

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0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

150

Consumer Confidence Index

Source: Conference Board

GROWTH

STATIC

RECESSION


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ISM Purchasing Managers Index


20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

60.0

65.0ISM - Purchasing Managers Index, 2009-March 2014

Source: Institute of Supply Management

55.3

GROWTH

NO GROWTH

RECESSION


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Short Term Mortgage Rate Trend


3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

6.0%

2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 2Q13 4Q13 2Q14

5-Year Quarterly Mortgage Rate Trend30 Yr Rate

4.16%

Source: Freddie Mac Primary Mortgage Market Survey


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Key Indicators Driving

Houstons Economy

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U.S. Employment Year over Year Change



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MSA Annual Job Growth


Rank MSA Total Employment Job Gains Percent

1New York-Northern New Jersey-Long Island 8,873,400.00 155,400 1.8%

2Dallas-Fort Worth-Arlington 3,207,300.00 120,800 3.9%

3Houston-Sugar Land-Baytown 2,895,700.00 112,200 4%

4Los Angeles-Long Beach-Santa Ana 5,616,300.00 91,700 1.7%

5Miami-Fort Lauderdale-Pompano Beach 2,379,800.00 76,900 3.3%

6Atlanta-Sandy Springs-Marietta 2,461,200.00 63,900 2.7%

7San Francisco-Oakland-Fremont 2,160,500.00 59,100 2.8%

8Boston-Cambridge-Quincy 2,611,800.00 57,200 2.2%

9Seattle-Tacoma-Bellevue 1,845,800.00 49,700 2.8%

10Phoenix-Mesa-Glendale 1,811,100.00 47,400 2.7%


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Annual Job Growth 23 Year History


-25,000

-5,000

15,000

35,000

55,000

75,000

95,000

115,000


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Annual Job Growth By Sector July 2013 July 2014


0 5,000 10,000 15,000 20,000 25,000

Information

Financial Activities

Other services

Mining and Logging

Manufacturing

Construction

Government

Leisure and hospitality

Education and health services

Trade, transportation and utilities

Professional and business services

4.7%

3.4%


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HOUSTON OFFICE Under Construction

Developments Q2 2014


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HOUSTON OFFICE Proposed

Developments Q2 2014


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Annual International Demand for Oil



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HoustonHistorical Employment: Total Non-Farm


Forecast

2014: $96.21 2015: $93.87Source: Energy Information Administration


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HoustonPopulation Projections


2010 2015 2020 2025 2030 2035 2040 2045 2050

0.5 Scenario 5,920,416 6,422,279 6,934,564 7,464,739 8,005,872 8,557,160 9,117,234 9,685,380 10,273,617

1.0 Scenario 5,920,416 6,635,281 7,437,124 8,334,616 9,323,814 10,408,879 11,607,433 12,932,722 14,405,099

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

11,000,000

12,000,000

13,000,000

14,000,000

15,000,000

PopulationP

rojecti

ons

Source: Texas State Data Center


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Top MSAs Ranked by Population Growth

Source: US Census Bureau, Population Estimates Program, June 2014


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The Economic Barometer:

Houstons Housing Market

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Houston Annual Single-Family Permit History


10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Q2 2006 Q2 2007 Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012 Q2 2013 Q2 2014

Permits

Permits

Source: Bohlke Consulting Group


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New Home Permits by Market Area


4,

848

3,

722

3,

136

4,

147

1,

818

1,

067

3,

741

3,

118

4,

740

5,

954

4,

144

3,

310

4,

229

2,

023

1,

333

3,

874

3,

264

5,

034

0

1,000

2,000

3,000

4,000

5,000

6,000

CENTRAL FAR NORTH NORTHEAST NORTHWEST SOUTH SOUTHEAST SOUTHWEST WEST

NORTHWEST

WEST

SOUTHWEST

Permits

Market Areas

HOUSTON MARKET AREAS

JUN 12 - MAY 13 JUN 13 - MAY 14 Source: Bohlke Consulting Group


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#2 The Woodlands607 Permits

#3 Cinco Ranch595 Permits

#1 Riverstone755 Permits

#4 Kingwood471 Permits

#8 Sienna Plantation424 Permits

#9 NorthPointe366 Permits

#7 Woodforest427 Permits

#5 Cross CreekRanch 454 Permits

#6 Aliana447 Permits

#10

Firethorne365 Permits


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Houston Building Almost

As Many Homes as California


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2011 2012 2013 2014

California Houston MSA

Source: US Census Bureau, Texas Real Estate Center, 2014


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Houston Single Family Home Sales - MLS


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Listings For Sale

Annual Closings


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Whats Next for Houston?

28

Builder/Developer Land Transactions


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Bui lder/Developer Land Transactions

Opportunity for Business Growth


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Business Growth Local Ad Spending Forecast

2014 2019

% Share of Media % Share of Media

Cable TV 3.2% 2.5%

Cinema 3.1% 3.2%

Direct Mail 7.8% 4.6%Directories 7.5% 3.9%

Local TV 10.3% 5.3%

Newspaper 15.6% 9.4%

Online 34.0% 60.8%

Out of Home 1.2% 0.9%

Other Print 7.2% 3.4%Radio 9.0% 5.4%

Telemarketing 1.0% 0.6%

Total Ad Spending Estimates $1.7 billion $2.6 billion

Source: Compass Market Report, Houston, TX Borrell Associates, Inc.

Ad spending is projected to increase by 54% increase over the next 5 years,

online will represent a 61% share.


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