Stunja & Company
Tech-Powered Financial Forecasting

When it comes to financial planning, large operators like REITs rely on precise forecasting, now more than ever, due to fluctuating interest rates and market volatility. The pressing need for data-driven insights to make informed decisions and strategically allocate resources has led companies to adopt technology-driven solutions to move away from manual forecasting.

The challenge here lies in using the technology effectively. The key is to adeptly utilize automated solutions to consolidate the vast amount of available data to ensure accurate forecasting.

At the nexus of finance and technology stands Stunja & Company, a management consulting firm that specializes in developing next-generation fintech forecasting solutions.

Stunja & Company brings together everything clients need for accurate forecasting on one platform and empowers informed decision-making. It understands the critical role of ensuring technology is equipped with the necessary data and parameters to generate accurate forecasts.

Gathering data from various sources into the portfolio management process, it allows clients to assess the best options for financing, considering factors like LIBOR rates and treasury market forecasts. By integrating revenue forecasts with expense projections, Stunja & Company enables informed actions regarding hiring, payroll, layoffs, loan repayment and other critical business aspects.

“We focus on the core group of technologies that large commercial companies are using, to leverage the best-in-class solutions to fuel accurate and efficient forecasting,” says Joseph Stunja, founder and principal.

Dynamic Portfolio Management

Joe holds a degree in Finance from Pennsylvania State University’s Smeal College of Business, where he serves as an active Advisory Board member of the Institute of Real Estate Studies. He attributes much of his business success to shadowing his serial entrepreneur father from a young age.

He developed a passion for addressing the needs of the financial sector through the intelligent use of technology. His career in the technology sector began in commercial real estate valuation before transitioning to acquisitions, where he honed his expertise in complex real estate transactions. His foray into technology began as an early adopter, collaborating with software companies to address system inefficiencies by leveraging firsthand experience in the acquisition sector. Through a deep understanding of real estate fundamentals, particularly in New York City, Stunja recognized the transformative potential of technology to scale operations and enhance efficiency.

His company’s white glove service identifies a client’s primary pain points within their operations by taking a deep dive into their existing infrastructure. The clientcentric approach takes into account factors such as the size of the fund, current assets under management and long-term growth objectives. This assessment directs the selection of technology solutions best suited for each case.

The portfolio management model implemented by Stunja & Company is dynamic and adaptive, incorporating new data as it becomes available to generate live forecasts. Clients appreciate the flexibility and accuracy provided by this approach, leading to increased adoption across multiple investment vehicles. As the company expands its services to additional funds within client portfolios, the platform continues to evolve, supporting ongoing growth and innovation.

Quarterly Securities and Exchange Commission reporting requirements and the importance of accurate financial statements for publicly reported companies are prioritized. Solutions that provide quarter-over-quarter and year-over-year analysis reports are tailored to each client's needs. While the models may vary depending on the firm or investment type, the underlying principles of income statements and balance sheets remain universal, serving as a foundation for accurate financial reporting and analysis.

Despite the strengths of individual software solutions, Stunja & Company addresses the challenge of integrating disparate technologies that may not communicate effectively with each other. It develops custom software solutions that streamline operations and enhance accuracy and efficiency, with the goal of eliminating the need for multiple software platforms.

While the implementation process for new technology solutions typically takes nine to 12 months, Stunja & Company delivers immediate impacts, gradually building on them to create a more comprehensive solution. It ensures the implemented technology adds tangible value to the business, as investing in the wrong tools can result in wasted resources and a return to inefficient practices.

To avoid such scenarios, Stunja & Company readies the right team for each project to ensure success. While contracting external resources is always an option, the company typically collaborates with the client's existing IT team and trains them in new languages or technologies. Through training, it ensures effective in-house use of resources, including automation of processes and integration of systems according to the client's existing technology infrastructure.

Tailored Solutions for Maximum Efficiency

Stunja & Company’s ability to tailor solutions to meet each client’s needs underscores its versatility and effectiveness in serving the diverse demands of the industry. For example, it addresses the challenge of consolidating property data from disparate sources by advocating for a transition to cloud-based software. This solution centralizes data, enhancing accessibility, security and collaboration while reducing inefficiencies associated with outdated practices like scattered Excel files. Role-based access control safeguards sensitive information and improves transparency in financial modeling processes.

Clients are aided in forecasting revenue from a large portfolio of properties, considering regional disparities and market dynamics. By incorporating property revenue and corporate expenses, Stunja & Company offers a comprehensive financial overview for strategic planning, including debt management and financial strategy formulation.

For private equity firms, including non-traded REITs, it provides real-time data tracking for daily capital raising on the public market. Its portfolio management tools enable quick assessment of asset performance and adherence to investment thresholds. Leveraging internal data analysis, clients refine market assumptions and optimize investment strategies, reducing reliance on third-party reports.

One significant takeaway for clients is the time-saving aspect and the convenience of having all their data consolidated in one accessible platform, which resonates well with portfolio managers. Rather than relying on manual processes like collecting data and emailing file requests, Stunja & Company automates these tasks to enhance accuracy and enable individuals to delve deeper into metrics and reports without being bogged down by administrative tasks.

Showcasing a proficiency in operational expenses beyond real estate considerations is Stunja & Company’s work with a major player in the single-family home rental market. The client is a publicly traded entity managing over 50,000 properties. Acting as the asset manager for these properties, it oversees a workforce of more than 1,500 employees. Its challenge revolved around effectively forecasting expenses across 150 distinct cost centers, where allocations were fluctuating based on market activity such as property acquisitions and sales.

Previously, the client relied on a cumbersome process involving over 100 separate Excel models, manually brought together by the finance team to generate reports. This method necessitated meticulous tracking and reconciliation of expenses to accurately analyze consolidated financial data.

Stunja & Company implemented a solution to centralize and automate the forecasting process, enabling real-time tracking of salaries, benefits, payroll taxes and expense allocations. The platform facilitated quarterly updates of the forecast model, providing short-term projections for over 12 months and long-term projections for up to three years. This transformation allowed the client to budget for the current year and strategically plan for expense growth over time, a capability previously overlooked.

“More than a problem solver, I like to be known as a driver of solutions who is fueled by a deep understanding of commercial real estate, technology and the financial market,” says Stunja.

A Path to Streamlined Portfolio Management

The company has demonstrated a unique ability to bridge the gap between business needs and technological solutions. Its value proposition lies in the capacity to translate business requirements into effective technology solutions. Through international collaborations with clients across APAC, Europe and beyond, it gains a global perspective that enriches the company’s understanding of diverse real estate markets and operational dynamics.

Keeping an eye on the horizon, Stunja & Company aims to develop an innovative accelerator by year end, which will facilitate quicker implementation and integration of existing software within client ecosystems. The plan is to streamline portfolio management for equity and debt investors and offer clean data for optimal performance and customization.

Drawing upon multifaceted expertise in real estate, technology and international business, Stunja & Company stands as an indispensable consultant in the industry, offering clients the necessary tools for critical strategic planning.