Many Trust parcels are situated in urban areas and have the potential for dense residential or commercial use. The Trust Land Office generates income through the real estate program from rent and occasional sales of parcels. Where appropriate, the Trust Land Office enhances the value of the Trust’s real estate portfolio through acquisitions, development or exchanges. Final acquisition, sale and leasing decisions are made after a thorough review of circumstances affecting the property and the status of the real estate market in the area at the time.
Real estate management is segregated into three management areas: real estate development, program-related investments, and real estate investments.
Real estate development
Vacant Trust land in high value areas continues to provide unique opportunities for revenue as unencumbered land continues to increase in value. Additionally, vacant holdings in high value areas may be lacking basic infrastructure so efforts are undertaken to provide needed infrastructure for the development of these parcels. The Trust Land Office manages multiple surface leases throughout the state and strives to establish additional long-term surface leases capable of generating additional income for the Trust.
This type of real estate asset has a specific purpose of serving Trust beneficiaries. The Trust’s current portfolio includes four PRI properties.
Real Estate Investment
The Trust’s current portfolio includes seven investment properties.