MVP REIT Announces NAV of $9.32 Per Share as of March 31, 2017
April 13, 2017 | by James Sprow | Blue Vault
On April 11, 2017, the board of directors of MVP REIT, Inc., determined the Company’s estimated net asset value (“NAV”) was approximately $9.32 per common share as of March 31, 2017. Shares in the initial public offering were sold at $9.00 per share. Last year the board of directors determined that the NAV per common share was $9.14. In determining the estimated value per share of the Company’s common stock, the board of directors relied on information provided by MVP Realty Advisors, LLC, the Company’s advisor and the board’s experience with, and knowledge of, the Company’s real property and other assets.
As of March 30, 2017, the Company had ownership interests in 31 parking assets. The Company’s board of directors determined the fair value of the Company’s investments in parking assets to be $158.1 million as of that date. This determination was based on appraisals of the fair value of the Company’s investments in parking assets as of that date. The Company engaged Parking Property Advisors, LLC, an independent third party valuation firm, to provide it with a valuation analysis for 29 of the properties, the other two properties not valued by the firm were purchased in November 2016, and January 2017, and were valued based on the appraisals at the time of purchase and management’s internal estimate.
The estimated value per share was based upon 10,978,745 shares of the Company’s common stock outstanding as of March 30, 2017. Although the estimated value per share has been developed as a measure of value as of March 30, 2017, the estimated value per share does not reflect (i) a liquidity discount for the fact that the shares are not currently traded on a national securities exchange and the Company’s share repurchase program provides only limited liquidity, (ii) a discount for the non-assumability or prepayment obligations associated with certain of the Company’s debt, or (iii) a discount for the Company’s corporate level overhead.
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