Black Creek Industrial REIT IV Inc., a publicly registered non-traded real estate investment trust, has updated the monthly per share net asset values for its Class T, Class W, and Class I common stock, as of June 30, 2020.
As of June 30, 2020, the REIT valued its Class T, Class W, and Class I shares at $10.0591 per share, compared to $10.0597 per share the previous month. Shares were originally priced at $10.00 each.
Class T shares are available to the general public; Class W shares are generally available through fee-based programs known as wrap accounts; and Class I shares are available to institutional investors.
The NAV per share is based on the estimated value of the company’s assets, less the estimated value of its liabilities divided by the number of outstanding shares, all as of June 30, 2020. Altus Group U.S. Inc., a third-party firm, assisted with the valuation process.
As of June 30, 2020, the REIT had approximately $1.2 billion investments in industrial properties, compared to $1.1 billion the previous month. Cash and cash equivalents decreased from $536.4 million at the end of May to $434.5 million at the end of June, and other assets decreased from $17.9 million to $7.4 million, month-over-month.
Lines of credit, term loan and mortgage notes remained flat at ($464.3 million), while other liabilities increased from ($18.4 million) in May to ($23.4 million) in June.
“The global pandemic and resulting shut down of large parts of the U.S. economy has created significant uncertainty and enhanced investment risk across many asset classes, including real estate,” the REIT stated in a filing with the SEC. “However, we believe we are well-positioned to navigate this unprecedented period.”
“Our balance sheet as of June 30, 2020 was strong with over $400 million of cash and less than 30 percent leverage…We have continued to see steady capital inflows from new investors who invested $189 million of new capital into the company during the second quarter,” the company added. “In addition, our portfolio was 97.1 percent leased as of June 30, 2020 and is diversified across 55 assets totaling 11.6 million square feet. Our NAV as of June 30, 2020 is $10.06 per share, which is flat relative to the previous month’s NAV per share and our distribution represents a 4.42 percent annualized yield for the second quarter with respect to Class T shares (without upfront sales load).”
Within its existing portfolio, approximately 92 percent of its customers continued to pay their rent for the second quarter of 2020, compared to average annual collections of more than 99 percent prior to the pandemic. The company does not expect any material difference for collections in July 2020.
The REIT is working with customers impacted by the pandemic, and where appropriate, has restructured leases to provide temporary rent relief. The REIT has executed or agreed to forbearance agreements with approximately 5 percent of its customers, and the company noted that new rent relief requests have been declining.
The $10.0591 per share transaction price for each share class will apply for subscriptions accepted as of August 1, 2020, distribution reinvestment plan shares issued following the close of business on July 31, 2020 and share redemptions as of July 31, 2020.
Black Creek Industrial REIT IV’s initial public offering was declared effective by the SEC in July 2017. The company has raised more than $1 billion in investor equity in the private and public offerings, including DRIP proceeds, as of March 31, 2020. The company oversees a real estate portfolio of 55 industrial buildings purchased $1.2 billion, as of June 30, 2020.