underperforming asset

(redirected from Underperforming Assets)

Underperforming Asset

An asset that is not generating an expected or necessary return. While the asset may produce income for the company or person possessing it, the income may not be sufficient and is certainly less than expected. Examples of underperforming assets include loans in which payments are irregular or products that have been inefficiently marketed. Companies with underperforming assets are often candidates for both hostile and friendly takeovers. See also: Nonperforming asset.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

underperforming asset

An asset that earns a lower rate of return than it would be capable of earning if it were properly used. A firm with underperforming assets is a prime target for takeover. Compare nonperforming asset.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
Mentioned in ?
References in periodicals archive ?
TH transferred RM19.9 billion worth of underperforming assets at the end of last year to the SPV as part of its restructuring plan.
ICON International is a specialized finance company that helps companies restore value to underperforming assets and fund corporate expenses through corporate-barter transactions.
"Fortune Holdings LLC's investment in Glenwood Point continues their impressive streak of identifying underperforming assets and acquiring them with the intent to implement a large-scale structured value-add program to add benefit to both the residents and the larger community," said Ron Corrao, Capstone Apartment Partners.
The analyst cites the company's announced layoffs with a related $150M restructuring charge and the need to re-organize its underperforming assets, with added concerns about its lack of a blockbuster title this year and anticipated sales decline for its franchise Call of Duty: Black Ops 5 game.
"As one of New York City's premier real estate firms, East End is perhaps one of the most qualified operating managers to reposition these underperforming assets and execute the proposed business plan with its partner," said Schwartz.
Additionally, 71% have identified underperforming assets and non-core assets to divest.
Fitch expects leverage will return to the low 5.0x range over the next few years as the company executes the sale and repositioning of selected underperforming assets, redeploying the proceeds into acquisitions and debt repayments.
As part of the agreement signed by Hellenic Bank and the Cyprus Cooperative Bank more than two weeks ago, the government is required to issue e1/41bn in guarantees in favour of Hellenic to shield it from possible impairments resulting from underperforming assets acquired by the state-owned Co-op.
With more than $1 trillion locked in underperforming assets and less than a quarter of that backed by equity, continued Crown ownership is a hugely important issue for public policy debate.
That means the plan should allow for heavy investment that may depress near-term results and/or a shrinking of the business to rid the company of underperforming assets. Focus first on stabilizing near-term earnings or cash flows and make sure your design has elements to retain talent (and attract it, as needed).
By February 2017, Frontier announced an $80 million net loss for the fourth quarter of 2016, largely due to these underperforming assets. These results were followed by a $75 million first quarter 2017 net loss, among other negative financial impacts.