#United States #Rancho Cucamonga #affordable housing #Credit Rating #National CORE

National CORE Maintains A+ Credit Rating for 2026

National CORE, a leading nonprofit affordable housing developer, has announced that it has successfully maintained an A+ credit rating from Standard & Poor's Global Ratings (S&P) for the fourth consecutive year, affirming its solid financial standing and operational excellence in a challenging economic environment.

The S&P rating signifies a high level of quality and stability, underscoring the strengths of National CORE as an organization. Robert Diaz, Executive Vice President of National CORE, expressed pride in the recognition. He emphasized, "The S&P rating is a standard of excellence that speaks volumes about the strength of National CORE as an organization and our strong outlook for the future." This affirmation not only reflects the organization's achievements but also serves as an essential instrument in providing high-quality affordable housing to communities across the nation.

Several financial strengths contributed to this prestigious rating, including:

• - Strong Management and Governance: National CORE has established solid leadership practices, underpinned by a comprehensive three-year strategic plan aimed at sustainable growth.
• - Remarkable Revenue Growth: The organization has demonstrated revenue growth that significantly outpaces its expenses, resulting in nearly doubling its EBITDA year-over-year.
• - High Operating Margins: National CORE has consistently achieved operating margins exceeding 20%, which is a robust indicator of its profitability.
• - Expanding Fee-Managed Portfolio: With projections to exceed 14,000 apartments by 2028, National CORE is growing its fee-managed portfolio, contributing to diversification and income stability.
• - Geographic Diversity: The organization has cultivated a geographically diverse portfolio that mitigates risks associated with operational volatility.
• - Robust Liquidity: National CORE's liquidity resources are deemed extremely strong, providing a critical financial cushion that nearly doubles expected operational needs, along with strong access to external liquidity sources.

Founded in 1992, National CORE has emerged as one of the most innovative developers of affordable housing in the United States. The organization established the Hope through Housing Foundation in 1998, aiming to deliver essential services that promote housing stability and support economic mobility among its residents. As a noteworthy achievement, in 2021, National CORE became one of only two nonprofit affordable housing developers in the nation to earn an A+ credit rating from S&P. Subsequently, in 2022, it successfully issued $100 million in social bonds, unlocking new avenues for capital investment into housing initiatives.

A core tenet of National CORE is the diversification of its funding and business operations. This approach is particularly reflected in S&P's analysis of the organization’s expanding geographic footprint along with its rapidly growing property management enterprise. By the end of 2026, National CORE's portfolio will include over 11,000 apartment homes spread across more than 114 properties located in California, Texas, and Florida. Additionally, the organization is working on four new developments in Texas and Florida that are nearing completion.

Notably, the property management aspect of the business is effectively managed, overseeing more than 6,000 apartment homes across over 100 properties for third-party operators in the affordable housing sector, spanning both California and Texas. This proactive growth strategy not only diversifies income sources but also mitigates exposure to operational volatility, as highlighted by Robert Diaz.

"It all comes back to National CORE's mission. Our goal is to support communities by creating beautiful, high-quality affordable housing," stated Michael Ruane, National CORE President. He further emphasized the critical nature of their mission, asserting that every strategic move made serves to bolster their capacity to help those most in need over the coming decades.

In conclusion, National CORE's reaffirmed A+ credit rating from S&P not only signifies financial health but also represents a continued commitment to address America's affordable housing crisis. With effective management, strategic growth plans, and a strong mission, National CORE is well-positioned to make a lasting impact in affordable housing development for years to come.