Transforming Budgeting and Forecasting for a Rapidly Growing Logistics Developer

The Situation 

A multi-billion-dollar logistics developer, owner, and operator was experiencing significant challenges with its budgeting and forecasting processes. The company relied on over 100 complex, siloed Excel models that required manual updates, often taking several months to complete. This approach was highly prone to errors, creating bottlenecks in both forecasting and reporting workflows. 

Furthermore, consolidating these disparate workbooks and preparing investor reporting packs was labor-intensive, diverting time and resources away from performance tracking and analysis. The lack of automation also limited the company’s ability to conduct “what-if” and sensitivity analysis, reducing its ability to respond to market changes effectively. 

The Approach 

Drawing on deep expertise in real estate and logistics operations, Alpha Alternatives designed and implemented a streamlined Enterprise Performance Management (EPM) solution tailored to the client’s needs. The project was delivered through three phases—Foundation, Development, and Testing—with active client collaboration throughout to ensure the solution aligned with business goals. 

The comprehensive EPM solution addressed every stage of the investment lifecycle and provided enhanced visibility across all financial activities. Key components included: 

• Project Development & Cost Tracking: Real-time tracking of project costs. 

• Project Financing Models: Integration of equity, debt, and hedging instruments. 

• Leasing Forecasting: Detailed projection of leasing revenue. 

• Operating Expense (Opex) Forecasting: Automated cost forecasting for ongoing operations. 

• CAM Recoveries Forecasting: Projections for recoveries under lease agreements. 

• Integrated Financial Statements: Seamless connection between financial and operational data. 

• Fund Performance Tracking & Returns Monitoring: Monitoring key performance metrics across multiple funds. 

• Promote Waterfall Calculations: Automated incentive distribution based on performance. 

• Annual Business Plan Automation: Streamlined creation of yearly business plans. 

The Impact 

With the new EPM solution in place, the company has transformed its budgeting and forecasting process. Key outcomes include: 

• Reduced Forecasting Time: The forecasting cycle, which once took months, now requires only a few weeks. 

• Elimination of Manual Consolidation: Automatic data feeds integrate live operational and financial data, eliminating the need for manual consolidation across individual projects and funds. 

• Comprehensive Visibility: The company now has a unified view of individual projects and multiple funds, enabling seamless analysis without additional manual work. 

• Enhanced Insights & Performance Tracking: The EPM solution offers the ability to benchmark investments, track fund returns, and monitor key metrics in real time. 

• Agile Decision-Making: Advanced “what-if” and sensitivity analysis tools empower the company to react quickly to market shifts, making smarter, data-driven decisions. 

Conclusion 

By partnering with Alpha Alternatives (formerly Lionpoint), the logistics developer now operates with a fully integrated EPM system that not only saves time but also delivers new strategic insights. With accurate forecasting, automated reporting, and improved decision-making capabilities, the company is well-positioned to continue scaling its operations while maximizing returns for investors.