Hartman vREIT XXI Updates Estimated NAVs Per Share
August 14, 2019
On August 8, 2019, the board of directors of Hartman vREIT XXI, a nontraded REIT, including all its independent directors determined an estimated net asset value per share of the REIT’s Class A common stock of $11.70 and Class T common stock of $11.23 as of December 31, 2018 (collectively, the “Net Asset Values per Share”). The net asset values per share as of December 31, 2017, were $11.34 and $10.94 for Class A and Class T shares, respectively. The latest NAVs represent a 3.2% increase for Class A shares and 2.7% increase for Class T shares. In determining the estimated values per share of the Company’s common stock, the board relied upon information provided in a report, or the Valuation Report prepared by its advisor, the recommendation of its audit committee, appraisal reports prepared by Collier’s International Valuation and Advisory Services (“Appraiser”) of its owned properties and properties owned by Hartman SPE, LLC in which the REIT owns a non-controlling limited liability company membership interest and an appraisal review engagement by LaPorte CPAs and Business Advisors which the REIT refers to as the “Valuation Consultant.” The advisor and the audit committee also relied upon its own experience with, and knowledge of, the real property investments and other assets of the Company as of December 31, 2018.
The Company is providing the estimated Net Asset Values per Share to assist broker dealers and stockholders in evaluating the Company and to assist broker dealers in meeting their ongoing customer account statement reporting obligations under the current rules of the Financial Industry Regulatory Authority, Inc. (“FINRA”).
The objective of the board in determining the estimated Net Asset Values per Share was to arrive at values, based on available data, that it believes are reasonable based on methods that it deemed appropriate after consultation with the advisor and the audit committee. The estimated Net Asset Values per Share are based on (x) the estimated value of the Company’s assets less the estimated value of the Company’s liabilities divided by (y) the number of outstanding shares of the Company’s Class A and Class T common stock, all as of December 31, 2018. The Company intends to determine updated estimated Net Asset Values per Share for each of its share classes every year as of the last day of the Company’s fiscal year, or more frequently in the sole discretion of the board, which values may be substantially different than the estimated values determined as of December 31, 2018.
Investments in real estate
As of December 31, 2018, the REIT’s investments in real estate assets consist of a retail shopping center located in San Antonio, Texas, which it refers to as Village Pointe; a flex/R&D property located in Richardson, Texas, which it refers to as Richardson Tech Center; and an office property located in San Antonio, Texas, which it refers to as the Spectrum Building. It also owned a 5.89% interest in an affiliate special purpose entity which owns 39 office, retail and light industrial properties in Houston, Dallas, and San Antonio, Texas, which it refers to as the Hartman SPE interest.
The Appraiser performed appraisals of the “market value – as is” as of December 2018 – February 2019 for each of Village Pointe, Richardson Tech Center and the Spectrum Building properties owned by the Company. The appraisals were conducted to conform with applicable professional standards, including Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice. In performing the appraisals, the Appraiser reviewed property level operating and financial information provided by the REIT and its advisor, management agreements, conducted inspections of the properties and reviewed other information about market conditions.
Source: SEC
