Cole Credit Property Trust V Announces NAV Per Share of $24.00
March 28, 2017 | by James Sprow | Blue Vault
The Board of Directors of Cole Credit Property Trust V, Inc., (“CCPT V”), a publicly registered non-listed real estate investment trust focused on investing in high-quality, income-producing necessity retail properties, net leased to creditworthy tenants under long-term leases, today announced an estimated per share net asset value (“NAV”) of the Company’s Class A and Class T common stock of $24.00 as of December 31, 2016.
“Based on its portfolio metrics and the current real estate cycle, we believe that CCPT V is well-positioned in the market,” said Bill Miller, Chief Executive Officer and President of Cole Capital. "We will look to continue to grow the portfolio with creditworthy tenants under long-term leases and a focus on necessity-based retail and services.”
The Company engaged Duff & Phelps, LLC, an independent global advisory and corporate finance consulting firm that specializes in providing real estate valuation services, to assist the Board with determining an estimated per share NAV and a valuation range of CCPT V. Using the NAV Methodology, Duff & Phelps arrived at a valuation range of $21.96 to $24.86 per share. The estimated per share NAV for Class A and Class T shares was determined and approved by the Board based on the recommendation of its Valuation Committee, which is comprised solely of independent directors, including the independent Chairman of the Board.
The updated estimated per share NAV for Class A and Class T shares was based upon the estimated market value of CCPT V’s assets, less the estimated market value of the Company’s liabilities, divided by the total shares outstanding, and was performed in accordance with the valuation guidelines established by the Investment Program Association Practice Guideline 2013-01, Valuations of Publicly Registered Non-Listed REITs. The estimated per share NAV does not reflect any “portfolio premium,” nor does it reflect an enterprise value for the Company. The Board intends to determine an updated estimated per share NAV on at least an annual basis.
To date, CCPT V has paid 35 consecutive monthly distributions to its stockholders, with a current distribution rate equal to an annualized amount of $1.575 per share for Class A shares and Class T shares (less, in the case of Class T shares, the per share distribution and stockholder servicing fees that are payable with respect to the Class T shares). The distribution amount per share declared by the Board is not affected by the determination of the NAV.
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