Carey Watermark Announces $10.80 NAV Per Share
April 18, 2017 | by James Sprow | Blue Vault
Carey Watermark Investors Incorporated announced April 12, that its estimated net asset value (“NAV”) as of December 31, 2016, has been determined to be approximately $1.5 billion, or $10.80 per share of common stock, based on shares outstanding at December 31, 2016. The NAV was calculated by Carey Lodging Advisors, LLC, the advisor, relying in part on an appraisal of the fair market value of the real estate portfolio at December 31, 2016, provided by CBRE Hotels (“CBRE”), and estimates of the fair market value of its mortgage debt at the same date provided by Robert A. Stanger & Co., Inc. (“Stanger”), each of which is an independent consultant and service provider to the real estate industry. The net amount was then adjusted for other net assets and liabilities and the advisor’s interest in disposition proceeds at December 31, 2016. The estimate produced by this calculation was then divided over the total shares outstanding as of December 31, 2016 and rounded to the nearest $0.01 on a per share basis. The NAV has been calculated using a methodology conforming to the Investment Program Association (“IPA”) Practice Guidelines for Valuations of Publicly Registered Non-listed REITs (April 2013) and fair value accounting standards under generally accepted accounting principles in the United States. The independent directors of the REIT’s board approved the engagement of CBRE and Stanger, reviewed the methodologies used by CBRE and Stanger and recommended that the board of directors adopt the NAV.
Starting April 2017, the NAV of $10.80 per share will be used for purposes of effectuating permitted redemptions of our common stock and issuing shares pursuant to our distribution reinvestment plan.
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