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When a $10B Deal Becomes a Forecasting Case Study

Brookfield Asset Management is in talks to buy Yes! Communities — a manufactured housing landlord — from Singapore’s GIC in a $10B+ deal.

At first glance, it’s just another mega real estate transaction.
But look closer, and it’s an FP&A masterclass hiding in plain sight.

Why FP&A Should Care

Yes! Communities isn’t selling a luxury condo tower. They run 213 manufactured housing communities, 54,500+ home sites across the U.S. That’s scale, but it’s also complexity.

From an FP&A lens, this type of deal is about more than rent rolls. It’s about building a forecast that survives stress-testing:

  • Interest rate sensitivity: How much debt service can the portfolio carry if rates rise another 100 bps?
  • Regulatory scenarios: What happens if rent control spreads into more states?
  • Operational levers: How do you model tenant turnover, maintenance costs, and occupancy trends over 10+ years?

This isn’t just finance — it’s decision architecture.

The Hidden Risk

Many finance teams over-simplify in these situations. They assume steady occupancy and smooth rent growth. But manufactured housing operates in markets vulnerable to shocks — local ordinances, community pushback, even infrastructure costs.

Miss those in your model, and you’re not forecasting. You’re storytelling.

The FP&A Framework

Deals like this remind us of a simple, ruthless process:

  1. Map volatility, not averages. Don’t model “expected rent growth.” Model the extremes.
  2. Run parallel futures. Build 3–4 versions of the next decade (rates down, rates flat, rates up, regulation shock).
  3. Connect capital to operations. Don’t just model NOI. Model the real engine: how small changes in turnover, repair costs, or regulatory headwinds ripple through cash flow.
  4. Pressure-test the exit. Every acquisition story ends with an exit. Model IRR not just on sale at Year 10, but on delays, downturns, and stalled exits.

Why It Matters

Brookfield isn’t buying cheap houses. They’re buying predictable cash flows — if, and only if, the FP&A work behind the deal is airtight.

And that’s the takeaway: FP&A isn’t about telling a good story for today’s board meeting. It’s about building models resilient enough to survive tomorrow’s shocks.

Because in deals this big, one lazy assumption can turn a $10B bet into a $10B liability.

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