CIM Income NAV Inc., a publicly registered non-traded real estate investment trust formerly known as Cole Real Estate Income Strategy Inc., plans to modify its public offering from a daily to a monthly net asset value REIT.
“We believe this change will result in greater access to capital to execute on our investment strategy, which will help us to better achieve our investment objectives by driving growth and diversification within the portfolio, creating a stronger balance sheet and enhancing liquidity for the benefit of all stockholders,” the company said in a filing with the Securities and Exchange Commission.
As part of the transition, the company plans to change the frequency of its NAV calculations from daily to monthly, and to provide share redemptions on a monthly basis.
The company indicated that as a monthly NAV REIT, investors’ subscriptions will be accepted on the first day of each month and the purchase price of each class of shares would generally equal the prior month’s NAV, plus applicable selling commissions and dealer manager fees.
CIM Income NAV currently offers Class D, Class T, Class S, and Class I shares of common stock, on a continuous basis and for an indefinite period of time, by filing a new registration statement before the end of each prior offering. The registration statement for the REIT’s initial public offering of $4 billion in shares was declared effective by the SEC in December 2011 and was superseded by registration statements declared effective in August 2013 and February 2017. In February 2020, the REIT registered a follow-on offering with the Securities and Exchange Commission.
In connection with the change to a monthly NAV, the company said that the next monthly redemption date will be April 30, 2020, for redemption requests received in good order by 4:00 p.m. (Eastern Time) on April 29, 2020, and the next subscription admission date will be May 1, 2020, for subscriptions received in good order by April 24, 2020.
As of January 31, 2020, CIM Income NAV owned a portfolio of 128 properties purchased for $901.2 million. The portfolio includes six anchored shopping centers, 100 retail assets, 11 industrial and distribution properties, and 11 office properties, comprising approximately 5.4 million rentable square feet of commercial space. The REIT raised approximately $864.3 million in investor equity as of March 31, 2020.