Corporate Property Associates 18 – Global Announces Higher NAV

August 29, 2019 

Corporate Property Associates 18 – Global Incorporated (“CPA:18 – Global”) announced on August 27 that its estimated net asset value per share (“NAV”) as of June 30, 2019 was $8.91 per share for its Class A common stock and $8.91 per share for its Class C common stock, which were 2.1% higher than its NAVs at March 31, 2019. The increase in NAV is primarily due to the appreciation of the real estate portfolio.

The NAV of $8.91 for both Class A common stock and Class C common stock will be used for purposes of effectuating permitted redemptions of the REIT’s common stock, issuing shares pursuant to the distribution reinvestment plan and the payment of the distribution and shareholder servicing fee for the Class C common stock.

The June 30, 2019 NAVs were calculated by the advisor in accordance with the REIT’s current valuation policies, in which it obtains an independent rolling appraisal of the fair market value of approximately 25% of its real estate portfolio based on asset value once every quarter. The portfolio of assets to be appraised each quarter will be representative of the composition, by both geography and property type, of the entire portfolio. For each quarterly NAV calculation, the REIT also updates the latest independent real estate portfolio valuations for the following:

• adding new acquisitions not included in the independent real estate portfolio value at their appraised values at acquisition, using independent third-party appraisal firms approved in advance by the independent members of the REIT’s board of directors;

• adding development projects not included in the independent real estate portfolio value for either their latest quarterly carrying values for in-process projects or with a third-party appraised value for any completed project (to the extent the completed project value is not already captured in the quarterly update appraisal);

• updating the value of any property that the advisor deems to have had a significant event during the quarter, based on an independent third-party appraisal (to the extent not already captured in the quarterly update appraisal) or the contractual gross sale price for properties that are pending dispositions; and

• removing assets that were disposed of during the quarter.

In calculating the quarterly NAVs, the current valuation policies also provide that the REIT:

• obtains an updated independent valuation of its debt as of quarter end;

• makes adjustments for other tangible balance sheet assets and liabilities as of quarter end;

• uses total shares outstanding for each class of shares as of quarter end; and

• uses foreign exchange rates as of quarter end in converting the local currency fair market value of international assets and liabilities to U.S. dollars.

If the amounts calculated in accordance with the quarterly valuation policies would result in a change within +/-1% of the most recently published NAVs, we do not change the NAVs from those most recently published.

Source:  SEC