The independent directors of American Realty Capital New York City REIT Inc., a publicly registered non-traded REIT sponsored by AR Global, approved an estimated net asset value of $20.26 per share.
New York City Advisors LLC, the REIT’s advisor, engaged Duff & Phelps to perform appraisals of the company’s real estate assets and provide a valuation range of each by using the method that complies with IPA guidelines. The valuation firm also reviewed the company’s other assets and liabilities.
The $20.26 per share NAV is based on an estimated fair value of the Company’s assets less the estimated fair value of the company’s liabilities, divided by 31,346,179 shares of common stock outstanding. The company’s real estate assets have a total value of $27.12 per share with other assets totaling $2.64 per share. The fair value of debt was ($9.21) and other liabilities totaled ($0.29).
The board reviewed the valuations prepared by Duff & Phelps and determined that the value of the real estate assets was $850.1 million, which was within the valuation range of $796.4 million to $860.0 million provided by Duff & Phelps.
The REIT’s advisor noted that applying the low, midpoint and high range of discount rates determined by Duff & Phelps resulted in an estimated per share NAV range equal to $18.55 – $20.58 per share on a fully diluted basis. The midpoint in that range was $19.53.
American Realty Capital New York City REIT invests in properties located in the five boroughs of New York City, with a focus on Manhattan. The company closed its offering in May 2015 and raised a total of $776 million in investor equity, as of the first quarter of 2018. The company owns six properties with an investment cost of $725 million, according to Summit Investment Research.