June, a proptech company improving the rental experience for both tenants and landlords, yesterday announced that it is among the first venture-backed real estate operators to achieve EBITDA profitability. The company became profitable with annualized revenues surpassing $54 million while sustaining an impressive growth rate of more than 60% year-over-year. The company also announced that Chief Operating Officer Mauricio Zuniga is being promoted to be the new Chief Executive Officer, replacing founder Dan Mishin, who will remain as Chairman of the Board. The company will scale its growth with a new real estate investment platform seeded by June investors, NextStory Capital, that will acquire urban multifamily assets to be operated by June. NextStory Capital is led by co-founder & CEO Daniel Cohen.
“I’m extremely proud of the team’s ability to build one of the first large profitable proptech companies. Despite all the volatility of market cycles, this team has stayed laser-focused on what’s important – customer experience, asset-light growth, profitable unit economics, and adding long-term value to our owner-partners,” said Dan Mishin, Chairman of June. “I’m very excited for the new phase of growth for both June and NextStory and am a huge believer in Mauricio’s and Dan’s ability to execute the long-term vision for both companies.”
“I know I speak for everyone at June in thanking Dan for his leadership and tireless devotion,” said Mauricio Zuniga, CEO of June. “I am honored and privileged to lead our extraordinary team of talented, passionate, and high achieving professionals. We will continue to innovate to deliver exceptional experiences to our residents and drive above market returns for our landlord partners. June plans to expand its footprint from 3,000 to 15,000 units in target markets, including New York, Boston, Washington D.C., and Chicago, in the next four years.”
NextStory Capital will play a significant role in June’s strategic growth. The real estate investment platform will act as a PropCo (property-owning company) to June’s OpCo (operating company). NextStory Capital will acquire Class B urban residential assets and June will manage those properties, driving significant above-market revenue and NOI. The arrangement will enable NextStory Capital to enhance the value of its real estate portfolio while rapidly growing June’s inventory and offerings to its customers. NextStory Capital will make its first acquisitions in New York City this year.
“June and NextStory Capital together as an OpCo/PropCo partnership presents an opportunity to provide unparalleled value to our customers, partners, and investors,” said Daniel Cohen, Co-founder and CEO of NextStory Capital. “I am thrilled that we have structured a relationship that maximizes collaboration, aligns incentives and creates significant scaling opportunities for both platforms. NextStory will deliver consistent, valuable inventory, helping June scale quickly, while June can create NOI premiums in NextStory Capital’s assets, creating value for NextStory’s investors.”
To date, June has raised over $60M with support from Softbank Ventures Asia, FJ Labs, Quiet Capital, K50, TQ Ventures, Altair Capital, Olive Tree Capital, HR capital, and others.
“June sets itself apart from other proptech companies by understanding the importance of staying extremely focused on what’s important – customers, profitability, technology-driven competitive advantage, and a truly scalable capital model,” said Matt Humphrey, Partner at Quiet Capital. “We are grateful for Dan’s leadership as CEO since the day June was founded and we welcome his continued role as Chairman of the Board going forward. Together, we expect both companies will scale effectively and continue to deliver an exceptional experience to both renters and landlords across the country.”
Also Read:
MRI Software acquires PropTech Services Leader Loci Solutions
Verizon Business partners with HCLTech for Managed Network Services
