Rancho Cucumonga, California, October 27 (Reuters/ PR Newswire ) – National CORE announced today that S&P Global Ratings has confirmed the A+ credit rating of this non-profit affordable housing developer for the fourth consecutive year, noting its various strengths in organization and finance.
Executive Vice President Robert Diaz stated: "The S&P rating is an excellent standard that fully reflects the strength of National CORE as an institution, as well as our strong outlook for the future. This rating is an indispensable tool as we advance the construction of high-quality, affordable housing."
S&P's rating lists several specific financial advantages of National CORE.
- Strong management and governance, including a stable leadership team and a three-year strategic plan.
- Revenue growth has significantly outpaced expenses, with EBITDA nearly doubling year-on-year.
- Operating profit margin exceeds 20%
- The rapidly expanding portfolio of managed apartments is expected to exceed 14,000 units by 2028.
- A diversified asset portfolio with regional distribution reduces the risk of operational fluctuations.
- High liquidity
National CORE was established in 1992 and is one of the most innovative and affordable housing developers in the United States. In 1998, the organization created Hope, through, and Housing Foundation to provide resident services and promote housing stability and economic mobility.
In 2021, National CORE became the second non-profit affordable housing developer in the United States to receive a Standard & Poor's (S&P) A+ credit rating. The following year, the organization issued $100 million in social bonds, opening up new sources of funding for housing acquisitions, development, and renovations.
Diversified sources of funding and business operations are the core principles of National CORE. This is also reflected in two aspects emphasized by S&P: the institution's continuously expanding geographical footprint, as well as its rapidly growing property management business.
By the end of 2026, National CORE's asset portfolio will exceed 11,000 apartment units, distributed across more than 114 properties in California, Texas, and Florida. This includes four new development projects that are nearly completed, located in Texas and Florida.
The property management business also manages over 6,000 apartment units for third parties on behalf of the housing operators, involving more than 100 properties located in California and Texas.
Diaz indicates that this growth helps to reduce operational risk fluctuations and at the same time creates more sources of income to support the institution's mission.
S&P also mentioned the “extremely strong” liquidity of National CORE, stating that its available resources are nearly twice the expected demand, and it also possesses a strong ability to obtain external liquidity. The company stated that this financial flexibility enhances National CORE's capability to continue investing in affordable housing at a time when the demand for housing in the United States has significantly risen.
National CORE President Michael Ruane stated: "It all comes down to National CORE's mission. Our goal is to support communities by creating beautiful, high-quality, and affordable housing. This mission has never been more important than it is now, and every step we take to lay a solid foundation will enable us to continue serving those who need us most in the coming decades."
About National CORE
National CORE is one of the largest non-profit developers in the United States, with a 30-year history of innovation. In 2021, National CORE became one of only two affordable housing developers to receive a Standard & Poor's Global Rating of A+. In 2022, National CORE issued $100 million in 2022 Series social bonds to accelerate the development of much-needed affordable housing. National CORE serves over 25,000 residents and is committed to being a "starting point" rather than an "end point" for families in financial distress. In 1998, National CORE founded the charitable non-profit organizations Hope, through, and Housing Foundation, whose mission is to break the cycle of intergenerational poverty by promoting educational achievements, economic mobility, and overall well-being for its residents.
Media contact: William Diepenbrock [ email protected ] (909) 294-7883
