Rodin Global Property Trust Updates NAV, Reports Capital Raised to Date
November 15, 2017 | James Sprow | Blue Vault
On November 8, 2017 the board of directors of Rodin Global Property Trust, a publicly registered nontraded REIT, approved an estimated net asset value as of September 30, 2017 of $24.89 per share for Class A Shares and Class I Shares and $24.88 per share for Class T Shares. The calculation of the estimated net asset value was performed by Robert A. Stanger & Co., Inc., an independent valuation firm, in accordance with the procedures described in the “Net Asset Value Calculation and Valuation Procedures” section of the REIT’s prospectus. Although the independent valuation firm performs the calculation of the estimated net asset value, the REIT’s board of directors is solely responsible for the determination of the estimated net asset value.
The REIT commenced its initial public offering of $1.25 billion in shares of common stock on March 23, 2017, of which up to $1.0 billion in Class A, Class T and Class I shares are being offered pursuant to its primary offering and up to $250 million in shares are being offered pursuant to its distribution reinvestment plan, or DRP. On May 18, 2017, it satisfied the minimum offering requirement as a result of the purchase of $2.0 million of Class I Shares by its sponsor and it commenced operations.
As of November 10, 2017, it had issued 613,487 shares of common stock (consisting of 306,542 Class A Shares, 152,398 Class T Shares and 154,547 Class I Shares) in the offering for gross proceeds of approximately $15.0 million. The primary offering is expected to terminate on March 23, 2019, unless extended by the board of directors.
The determination of NAV involves a number of assumptions and judgments, including estimates of the Advisor’s interest in disposition proceeds (if any). These assumptions and judgments may prove to be inaccurate. There can be no assurance that a stockholder would realize $24.89 per share of Class A and I common stock or $24.88 for Class T common stock if the Company were to liquidate or engage in another type of liquidity event today. In particular, the Company’s September 30, 2017 NAV is not based on a full appraisal of the fair market value of the Company’s real estate portfolio at that date and does not consider fees or expenses that may be incurred in providing a liquidity event. The board believes the methodology of determining the Company’s NAV conforms to the Investment Program Association’s Practice Guideline for Valuations of Publicly Registered Non-Listed REITs (April 2013) and is prepared in accordance with the procedure described in the “Net Asset Value Calculation and Valuation Procedures” section of the Company’s prospectus. In addition, the Company’s board of directors periodically reviews the Company’s NAV policies and procedures.
The purchase price per share for each class of the Company’s common stock will generally equal the prior quarter’s NAV per share, as determined quarterly, plus applicable selling commissions and dealer manager fees. The NAV for each class of shares is based on the value of the Company’s assets and the deduction of any liabilities, and any distribution fees applicable to such class of shares.
