SNL’s NAV Monitor Shows Listed REIT Sectors Trading at Premiums to NAVs

March 7, 2017


SNL’s NAV Monitor Shows Listed REIT Sectors Trading at Premiums to NAVs

March 6, 2017 | by James Sprow | Blue Vault 

Investment on Pocket Watch Face. Time Concept.

In its monthly NAV Monitor report, SNL Financial (an offering of S&P Global Market Intelligence) reported on March 6, that four traded REIT sectors were priced at significant median premiums to NAVs:  Healthcare (+13.4%), Specialty (+10.2%), Self-storage (10.0%) and Data center (+9.5%). The sector with the greatest discount of share pricing to NAVs was Retail (-10.1%). 

The NAV analysis includes publicly traded U.S. equity REITs with market caps greater than $200 million. The median for those publicly traded equity REITs was a discount of 1.7% to net asset values.

The high premiums for the healthcare and data center sectors may help explain the rumors that Carter Validus Mission Critical REIT, a nontraded REIT with both healthcare and data center properties, may be considering a sale of its portfolio.

The REIT’s most recently reported net asset value per share was $10.02 with 183.7 million weighted average shares outstanding as of September 30, 2016. If a sale materializes that provides full liquidity as rumored, the common shareholders may have a significant capital gain.

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