Strategic Storage Trust II, Inc. Announces $10.65 NAV
April 25, 2018 | James Sprow | Blue Vault
Strategic Storage Trust II, Inc. (“SST II”) announced on April 20 that its board of directors has approved an estimated per share net asset value (“NAV”) of its Class A common stock and Class T common stock of $10.65, calculated as of December 31, 2017. Previously, the board approved an estimated NAV of $10.22 calculated as of December 31, 2016, representing a year-over-year increase of approximately 4.2 percent.
“We are very pleased with the increase in valuation of the Strategic Storage Trust II, Inc. portfolio,” said H. Michael Schwartz, chairman and chief executive officer of SST II. “The increase in our estimated per share net asset value validates our investment thesis of acquiring stabilized self storage properties, as well as the expertise of our management team, which continues to drive long-term value for our investors.”
Duff & Phelps, LLC (“Duff & Phelps”), an independent third-party real estate valuation and advisory firm, was engaged to provide valuation services of SST II’s assets and liabilities, including the 83 self storage properties and two vacant land parcels owned by SST II. Upon the nominating and corporate governance committee’s receipt and review of the Duff & Phelps valuation report, the committee concluded that the range in estimated value per share of $9.98 to $11.35, with an approximate mid-range value per share of $10.65, was reasonable and recommended to the board that it adopt $10.65 as the estimated value per share for the SST II’s Class A shares and Class T shares.
SST II acquired the 83 self storage properties and two vacant land parcels for approximately $838 million. The total appraised value of the properties at the midpoint was approximately $1.0 billion, representing an approximate 19.3% increase in the total value over the aggregate purchase price.
The valuation was determined in compliance with the Investment Program Association’s practice guideline regarding valuations of publicly registered non-listed REITs (“IPA guidelines”). Consistent with the IPA guidelines, the valuation does not include a portfolio premium that may reasonably be expected to accrue in a typical real estate valuation process conducted for transaction purposes, nor does it reflect an enterprise value.
For a full description of the methodology and assumptions used to determine the estimated per share NAV and the limitations of the estimated per share NAV, please see SST II’s Current Report on Form 8-K that was filed with the U.S. Securities and Exchange Commission on April 20, 2018.
About Strategic Storage Trust II, Inc. (“SST II”)
SST II is a public non-traded REIT that focuses on stabilized self storage properties. The SST II portfolio currently consists of 83 self storage facilities located in 14 states and Ontario, Canada, comprising approximately 51,300 self storage units and approximately 6.0 million net rentable square feet of storage space.
Source: Strategic Storage Trust II, Inc. Press Release April 20, 2018
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