Carter Validus Mission Critical REIT Inc., a publicly registered non-traded real estate investment trust, has declared an updated estimated net asset value of $5.33 per share, as of June 30, 2018.
Robert A. Stanger & Co. Inc., an independent third-party valuation firm, assisted with the valuation process, which was conducted in accordance with Institute of Portfolio Alternatives guidelines.
The updated per share NAV is based on the estimated value of the company’s assets less the estimated value of its liabilities, or net asset value, divided by the number of shares outstanding, calculated as of June 30, 2018.
“We continue to proactively manage the company’s portfolio and are making progress to best position the company,” said Michael Seton, chief executive officer and president. “We recently announced that we executed a non-binding letter of intent with an affiliate of the University of Texas System to lease the Bay Area Regional Medical Center in Webster, Texas, one of our largest investments, demonstrating our active management of the company’s portfolio.”
The company reported a $0.47 per share decline in the value of its real estate portfolio, which was largely attributable to Walnut Hill Medical Center and Bay Area Regional Medical Center. In May 2018, the company took a hit when Bay Area Regional Medical Center LLC, the sole tenant of the $200 million general acute care hospital that shares its namesake, closed its operations and filed for bankruptcy due to “significant hurdles with managed-care [insurance] companies.”
The REIT also posted a $0.46 per share decline relating to “other offsets”, which includes distributions in excess of earnings.
As of June 30, 2018, early investors who acquired REIT shares on April 28, 2011 and received all cash distributions, including the $3.00 special distribution, have received cumulative cash distributions of approximately $7.90 per share. The sum of these distributions and the $5.33 NAV per share is $13.23 per share.
Later investors who acquired shares on June 6, 2014 and received all cash distributions have received approximately $5.72 per share, which when added to the $5.33 NAV per share, equals $11.05 per share.
Carter Validus Mission Critical REIT owns a $1.1 billion portfolio comprised of 61 healthcare properties and one data center property. The company’s offering was declared effective by the SEC in December 2010 and closed in June 2014 after raising more than $1.7 billion in investor equity, according to Summit Investment Research.