You send quarterly updates. Do your investors actually read them?
Most don't tell you when updates are unhelpful. They just quietly don't re-invest in your next deal.
I've been on the receiving end of investor updates—as an LP in multiple real estate deals. Here's what actually matters.
What Investors Actually Want to Know
When I get a quarterly update, I have three questions:
- Am I going to get my money back? (Risk)
- Am I going to hit the target returns? (Returns)
- Can I trust these people? (Credibility)
Every single thing in your report should answer one of those questions.
If something doesn't address risk, returns, or trust—cut it.
The Template: 4 Pages Max
Page 1: Executive Summary
This is the only page most investors read. Make it count.
Include:
- Portfolio snapshot (units, occupancy, NOI)
- Performance vs. underwriting (on track, ahead, behind)
- Key wins this quarter (2-3 bullets)
- Key concerns (yes, include these)
- Next quarter priorities (2-3 bullets)
One page. No more.
Example:
Q3 2025 Summary
Portfolio: 45 facilities | 22,500 units Occupancy: 91.2% (vs. 89% underwritten) ✓ NOI YTD: $8.4M (vs. $8.1M underwritten) ✓
Highlights:
- Completed rate optimization across Southeast region (+$12/unit average)
- Acquired 3 facilities in Florida under budget
- Marketing CAC reduced 22% year-over-year
Concerns:
- Austin market softening due to new supply—monitoring closely
- 2 facilities below breakeven (turnaround plan in place, details in operational update)
Q4 Focus:
- Complete value-add capex on Q1 acquisitions
- Launch revenue management software across portfolio
- Refinance FL properties to lock in rates
Page 2: Financial Performance
Format: Tables and numbers. Not paragraphs.
Include:
- NOI summary (actual vs. budget, with variance explained)
- Cash flow: distributions paid, reserves, any capital calls
- Debt summary: current balance, LTV, interest rate, maturity
Why this format works: Investors can scan it in 10 seconds and know if they should be worried.
Page 3: Operational Update
Visual format. Charts over paragraphs.
Include:
- Occupancy trend chart (12-month view)
- Revenue per available foot (RevPAF) trend
- Marketing performance (cost per move-in)
- Capex progress (if relevant)
Brief commentary: 2-3 sentences explaining what the charts show and what you're doing about any issues.
Page 4: Market Update (Optional)
Only include if relevant. Most investors follow the market themselves.
When to include:
- Significant new supply in your markets
- Major economic changes affecting your properties
- Regulatory changes impacting operations
Keep it focused: Your markets, not national trends. What matters for this portfolio, not the industry generally.
What to Leave Out
Cut these:
- 10 pages of narrative — Nobody reads them
- Generic market commentary — "The self-storage industry continues to grow" adds nothing
- Overly optimistic spin — Investors see through it
- Excuses without solutions — If there's a problem, include the fix
- Property-by-property detail (unless asked) — Summary first, detail available on request
The test: Would a busy investor with 10 other deals to review appreciate this information? If no, cut it.
The Honesty Principle
Here's what most GPs get wrong: They hide bad news.
Bad approach: "Performance remains strong across the portfolio" (while two facilities are bleeding cash)
Good approach: "Austin market is soft due to new supply. Facilities 12 and 14 are below breakeven. Here's our 90-day turnaround plan: [specific actions]"
Why honesty works:
-
LPs can smell BS. They've seen dozens of deals. They know when you're hiding something.
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Problems without plans erode trust. Problems with clear plans build trust.
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The GPs who communicate problems early get forgiven. The GPs who hide problems until they're disasters don't.
My rule as an LP: I'll re-invest with a GP who told me about problems early and fixed them. I won't re-invest with a GP who surprised me at the end.
Delivery Logistics
Timing:
- Quarterly updates within 30-45 days of quarter end
- Be consistent—if you say quarterly, deliver quarterly
- If something major happens, send a special update (don't wait)
Format:
- PDF is fine
- Fancy investor portals are nice but not necessary
- Email with PDF attached works
Length:
- 3-4 pages for quarterly updates
- 8-10 pages for annual (include audited financials)
- Appendix available on request for those who want detail
K-1s:
- On time or early. This matters more than you think.
- March 15 deadline for S-corps, April 15 for partnerships
- Late K-1s = irritated investors = no re-investment
Building Trust Over Time
Investor communication isn't just during problems. Consistent, quality updates build relationship equity.
Between quarters:
- Brief market insights (if genuinely interesting)
- Major wins worth sharing
- Updates on portfolio events
Don't overdo it. Monthly emails become noise. Quarterly is the right cadence for most deals.
The goal: When you raise your next fund, investors already trust you because you've demonstrated transparency and competence for years.
Red Flags in Investor Updates
As an LP, these make me nervous:
-
No mention of any challenges — Every portfolio has challenges. If you're not mentioning any, you're hiding them.
-
Vague language — "Performance was impacted by market conditions" tells me nothing. What conditions? What impact?
-
Changing metrics — If you reported occupancy one quarter and switched to "economic occupancy" the next without explanation, I notice.
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Missing financial detail — If I can't see NOI vs. budget, I assume budget is being missed.
-
Late or inconsistent delivery — If quarterly updates come every 5 months, what else is disorganized?
Template Checklist
Before sending, verify:
Page 1 (Executive Summary):
- Performance vs. underwriting stated clearly
- Key wins (2-3 specific items)
- Key concerns (be honest)
- Next quarter priorities
- One page maximum
Page 2 (Financial):
- NOI actual vs. budget
- Variance explained
- Cash flow summary
- Debt summary
Page 3 (Operational):
- Occupancy trend
- Revenue metrics
- Marketing performance
- Charts/visuals over text
General:
- 4 pages or less
- Delivered within 45 days of quarter end
- Consistent format with previous quarters
- Proofread (errors erode trust)
Key Takeaways
- Most LPs only read page 1. Make your executive summary complete.
- Answer three questions: Will I get my money back? Will I hit target returns? Can I trust you?
- Be honest about problems. Include the plan to fix them.
- Use tables and charts over paragraphs. Make it scannable.
- 4 pages max for quarterly. Detail available on request.
- Consistent, on-time delivery builds trust over years.
- The GPs who communicate well get the next allocation.