Asset evaluation protocol

Woodfine's asset acquisition process begins with the co-location classification matrix. A candidate site must achieve a minimum tier classification before capital evaluation proceeds. The tier classification is the entry filter — it removes subjective judgment from the initial qualification stage and establishes a reproducible basis for comparing candidate sites across geographies. Sites that clear the filter subsequently enter the Direct-Hold framework under the interest coverage discipline.

Key takeaways

• The tier classification is a binary entry filter: a site either meets the minimum classification and advances to capital evaluation, or it does not — no exceptions are made for other site characteristics.
• The classification matrix evaluates three anchor layers (Primary Target, secondary operators, tertiary civic infrastructure) within defined catchment radii, producing a tier classification that rests on public location data rather than on a market view.
• Passing the tier threshold is a necessary but not sufficient condition for acquisition; asset-specific analysis covering condition, lease structure, title, and debt service follows in the capital evaluation stage.

Tier classification as entry criterion

A site that does not reach the minimum tier threshold is not considered for acquisition, regardless of other characteristics. The threshold is binary at the qualification stage: a site either qualifies for capital evaluation or it does not. This discipline prevents the evaluation process from beginning with advocacy for a preferred site and working backward to justify it.

The tier classification is a necessary but not sufficient condition for acquisition. A site that passes the threshold enters capital evaluation; it does not receive a commitment.

The classification matrix

The matrix evaluates three layers of anchor presence within defined catchment radii:

Primary Target anchor. A Walmart Supercentre in North American markets, or IKEA in European markets, within the site's primary trade area. The Primary Target anchor is the single most significant weighting factor in the matrix. A site without a committed Primary Target anchor cannot reach a tier classification sufficient to enter capital evaluation.

Secondary anchors. Large-format home improvement and warehouse club operators within the site's secondary catchment radius. Each confirmed secondary anchor within that radius advances the tier classification. The count and proximity of secondary anchors are what separate adjacent tier classifications within the same primary trade area.

Tertiary civic infrastructure. Hospitals and post-secondary institutions within a wider civic catchment radius. Civic anchors generate consistent, recession-resistant traffic that supplements retail-driven foot traffic. Their presence in the catchment contributes to the tier classification but does not substitute for retail anchor presence.

The combined assessment across the three layers produces a single tier classification. A minimum tier for capital evaluation is set at the platform level and applied uniformly to every candidate site.

Independent verification

The matrix runs on publicly available retailer location data and civic facility coordinates. Its inputs are observable facts on the ground — which operators and which civic facilities stand within the platform's defined radii — not a view of where a market is heading. A site's tier does not depend on Woodfine's internal assessment of market conditions, and two analysts applying the same criteria to the same data reach the same classification.

This reproducibility is not incidental — it is a design requirement. If the entry criterion depended on a judgment call that only Woodfine could make, the filter would not function as an objective standard.

Capital evaluation

A site that passes the minimum tier threshold enters capital evaluation. Capital evaluation applies asset-specific analysis that the matrix does not capture:

• Property condition and deferred maintenance
• Lease structure, tenant covenant, and lease term remaining
• Title, encumbrances, and zoning
• Current market rental rates relative to in-place rents
• Debt service capacity and financing terms

Capital evaluation produces an investment recommendation; the tier classification produced the candidate set. Neither step can substitute for the other. Approved acquisitions are placed under fiduciary data custody from the moment of closing.

The bottom line

The Asset Evaluation Protocol disciplines the acquisition funnel by enforcing an objective entry filter before any capital analysis begins. The tier classification eliminates advocacy-driven deal origination: if a site does not independently qualify under the co-location matrix, evaluation does not proceed. Once a site clears the threshold, conventional capital analysis applies — property condition, lease structure, title, and debt service capacity are assessed on their own terms. Neither the qualification stage nor the capital evaluation stage can substitute for the other; both are required before Woodfine commits to an acquisition.

See also

• Co-location Investment Thesis — the underlying investment logic that the matrix operationalizes
• Direct-Hold Framework — the ownership structure applied to acquired assets
• Interest Coverage Ratio — the debt management constraint applied at the capital evaluation stage

---

Copyright © 2026 Woodfine Capital Projects Inc. Licensed under Creative Commons Attribution-NoDerivatives 4.0 International.