Cole Office & Industrial REIT Announces NAV of $10.32
March 30, 2017 | by James Sprow | Blue Vault
Based on the recommendation from a valuation committee comprised solely of the Company’s independent directors, including the independent Chairman of the Board, on March 22, 2017, the Company’s board of directors unanimously approved and established an estimated per share NAV of the Company’s Class A and Class T common stock of $10.32 based on an estimated market value of the Company’s assets less the estimated market value of the Company’s liabilities, divided by the total number of Class A and Class T shares outstanding, as of December 31, 2016. The Company is providing this estimated per share NAV to assist broker-dealers that participated in the Company’s public offering in meeting their customer account statement reporting obligations under National Association of Securities Dealers Conduct Rule 2340. The estimated per share NAV will first appear on stockholder account statements for the quarter ended March 31, 2017. The Board previously determined an estimated per share NAV of the Company’s Class A common stock of $10.00 as of February 29, 2016. The Company intends to publish an updated estimated per share NAV on at least an annual basis.
In determining the estimated per share NAV, the Board considered information and analysis, including valuation materials, that were provided by Cushman & Wakefield of Illinois, Inc., Valuation & Advisory group, information provided by the Company’s advisor, and the estimated per share NAV recommendation made by the Valuation Committee. Cushman & Wakefield is an independent third-party real estate advisory and consulting firm that was engaged by the Company to (1) estimate market values for properties with greater than eight (8) years of remaining lease term using a direct capitalization approach, and (2) perform a discounted cash flow valuation for all of the Company’s properties with fewer than eight years of remaining lease term. Cushman & Wakefield also reviewed the Company’s methodology for estimating fair market adjustments to the Company’s debt and determined that the approach was reasonable.
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