Cole Credit Property Trust V Declares Net Asset Value
The board of Cole Credit Property Trust V Inc., a publicly registered non-traded real estate investment trust, approved an estimated net asset value of $24.00 per share for the company’s Class A and Class T common stock, as of December 31, 2016.
The previous NAV was also $24.00 per share for Class A shares, as of February 29, 2016. The company began offering Class T shares in March 2016.
“Based on its portfolio metrics and the current real estate cycle, we believe that CCPT V is well-positioned in the market,” said Bill Miller, chief executive officer and president of Cole Capital. “We will look to continue to grow the portfolio with creditworthy tenants under long-term leases and a focus on necessity-based retail and services.”
Duff & Phelps, an independent third party advisory firm, assisted the board with determining the estimated per share NAV and provided a valuation range of $21.96 to $24.86 per share.
The estimated per share NAV for Class A and Class T shares was determined and approved by the board based on the recommendation of its valuation committee, which is comprised of independent directors, including the independent chairman of the board.
The per share NAV was based on the estimated market value of the company’s assets, less the estimated market value of its liabilities, divided by the total shares outstanding, and was performed in accordance with the IPA valuation guidelines.
Because the new NAV remains unchanged, Class A shares are still priced at $26.37 per share, Class T shares are priced at $25.26 per share, and shares sold through the distribution reinvestment plan are $24.00 per share.
Cole Credit Property Trust V invests in income-producing retail commercial real estate primarily leased to creditworthy tenants under long-term, net leases. The company went effective in March 2014 and has raised $321.6 million in investor equity, as of December 31, 2016. The company oversees an approximately $500 million portfolio of 116 properties, according to Summit Investment Research.
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