UNLOCK THE POWER OF THE VAULT

Griffin Capital Essential Asset REIT Posts Increased NAV

October 21, 2020

Griffin Capital Essential Asset REIT Posts Increased NAV

October 21, 2020

The board of directors of Griffin Capital Essential Asset REIT, Inc., posted the quarterly update to the REIT’s estimated net asset values per share on October 20.  The values, as of September 30, 2020, showed an increase over the estimated values as of June 30, 2020. As of September 30, 2020, the NAV per share was $8.90, up from the NAV per share as of June 30, 2020, of $8.86. 

The REIT’s independent valuation firm utilized the discounted cash flow approach for 97 properties and the direct capitalization approach for one property in the REIT’s portfolio with a weighted average of approximately 7.0 years remaining on their existing leases. The weighted average cash flow discount rate was 7.53% and the terminal capitalization rate under the discounted cash flow approach was 6.85%. The REIT’s gross real estate asset value as of September 30, 2020, was estimated at $4.299 billion, up from the June 30, 2020, figure of $4.295 billion. 

As of June 30, 2020, the REIT owned 100 properties, consisting of 18 industrial properties, 73 office properties and nine mixed use properties. The properties were 88.6% occupied as of June 30, 2020.

Source:  SEC

Go Back
Gregory De Jong, CFP, Co-Founder of Paragon Advisors, LLC.
July 7, 2015
    

Blue Vault is just what advisors need to size up the different offerings in the nontraded REIT market. Just as importantly, it’s what the industry needs to encourage best practices among REITs.