New York City REIT Announces $20.26 Estimated NAV Per Share
October 28, 2019 | SEC
On October 24, 2019, the independent directors of the Board of New York City REIT, Inc., who comprise a majority of the Board, unanimously approved an Estimated Per-Share NAV equal to $20.26 based on an estimated fair value of the Company’s assets less the estimated fair value of the Company’s liabilities, divided by 30,994,977 shares of common stock outstanding on a fully diluted basis as of June 30, 2019.
Last year’s NAV per share was also $20.26, and shares were originally sold for $25.00 each.
On July 17, 2019, the Company acquired a fee-simple interest in three condominium units located at 196 Orchard Street, New York, New York for $88.8 million. The Advisor does not believe that any activity, or other changes, including the aforementioned acquisition, affecting the Company’s assets and liabilities between June 30, 2019, and the date of this filing would have a material impact on Estimated Per-Share NAV.
The Company anticipates publishing an updated Estimated Per-Share NAV on at least an annual basis.
The Board reviewed the valuations prepared by Duff & Phelps and determined that the value of the Real Estate Assets for purposes of determining the Estimated Per Share NAV was $907.7 million, which was within the range of the estimated value of the Real Estate Assets of $862.4 million to $937.1 million provided in the Duff & Phelps Report. The Board determined, based on the Advisor’s recommendation, to adjust the value of the Real Estate Assets $8.9 million above the midpoint of the range. The estimated value of the Real Estate Assets reflects an overall increase of 19.4% over the sum of (a) the original purchase price for those assets of $703.5 million, plus (b) post-acquisition capital expenditures for those assets of $56.5 million.
The Advisor noted that applying the low, midpoint and high range of discount rates determined by Duff & Phelps resulted in an Estimated Per-Share NAV range equal to $18.79 – $21.20 per share on a fully diluted basis. The midpoint in that range was $19.97.
On February 27, 2018, the Board unanimously authorized a suspension of the distributions that the Company pays to holders of the Company’s common stock, effective as of March 1, 2018. Pursuant to the Company’s DRIP, the price per share for shares of common stock purchased under the DRIP is the most-recent Estimated Per-Share NAV as determined by the Board from time to time. Accordingly, under the DRIP, future distributions, if any, may be reinvested in shares of common stock at a price of $20.26 per share which is the same as Estimated Per-Share NAV in the prior year.
As set forth in the SRP, which is currently suspended, the repurchase price per share of any repurchases approved by the Board pursuant to the SRP will be based on Estimated Per-Share NAV on the last day of the applicable six-month period ending June 30 or December 31 with respect to which the Company may repurchase shares pursuant to the SRP. The suspension of the SRP will remain in effect until the date that the Company announces that it will resume paying regular cash distributions to its stockholders if it does so at all.
Source: SEC
