Home Alts News Carter Validus Mission Critical REIT Lowers Net Asset Value

Carter Validus Mission Critical REIT Lowers Net Asset Value


The board of Carter Validus Mission Critical REIT Inc., a publicly registered non-traded real estate investment trust, has approved a $9.26 per share net asset value of the company’s common stock as of September 30, 2017. The current estimate is a decrease of approximately 7.6 percent compared to last year’s valuation of $10.02 per share.

The estimated per share NAV is based on the estimated value of the company’s assets less the estimated value of its liabilities, divided by the approximate number of shares outstanding on a fully diluted basis.

The company noted that the NAV per share decline is the result of a number of factors, including a change in the value of real estate relative to the prior year’s NAV, certain lost rental income and reserves and write-offs recorded on tenant related notes receivable from certain healthcare care assets, and estimated disposition costs associated with the sale of certain properties.

Robert A. Stanger & Co., an independent third-party valuation firm, assisted with the calculation and provided appraisals on 62 of the 84 properties in the real estate portfolio as of September 30, 2017. The valuation was performed in accordance with Investment Program Association guidelines.

As reported by The DI Wire, Carter Validus Mission Critical REIT recently completed the disposition of a 14-property data center portfolio and a 250,000 square foot data center in Chicago, Illinois for a combined $1 billion.

In addition, the REIT closed on the sale of one healthcare property in December and anticipates closing the sale of two additional data center properties in mid-January. The company said that it plans to evaluate and determine how to best deploy the proceeds from these dispositions, including potentially paying a special distribution to stockholders.

Carter Validus Mission Critical REIT invests in net leased data center and healthcare assets and oversaw a portfolio of 84 properties (19 data center and 64 healthcare properties) purchased for approximately $2.1 billion, as of the third quarter 2017. The company’s offering, which was declared effective by the SEC in December 2010, closed in June 2014 after raising more than $1.7 billion in investor equity.

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