The board of directors of Cole Credit Property Trust IV Inc., a publicly registered non-traded real estate investment trust, announced a $9.70 estimated net asset value per share of its common stock, as of August 31, 2015.
Investors had paid $10 per share ($9.50 to investors participating in its direct reinvestment plan) under the company’s initial public offering, which commenced in January 2012 and ended in April 2014.
The REIT engaged Duff & Phelps, which estimated a fair value range of $9.22 to $10.21 per share. The valuation was based upon the estimated market value of the company’s assets, less the estimated market value of its liabilities, and divided by its total outstanding shares.
“We are pleased with the overall performance of CCPT IV given the current market cycle,” said Thomas Roberts, chairman, chief executive officer and president of CCPT IV. “We believe that CCPT IV is well-positioned based on its overall credit quality, yield characteristics and diversity, and we intend to fully maximize the value of the portfolio through our continued active management.”
This is the first estimated NAV valuation that Cole Credit Property Trust IV has conducted since commencing operations in 2012. Going forward, the board intends to calculate an estimated NAV per share on at least an annual basis, which complies with FINRA’s new Regulatory Notice 15-02 that will go into effect in April 2016.
To date, the company has paid 41 consecutive monthly distributions to its shareholders, with a current distribution rate equal to an annualized amount of $0.625 per share, and expects to continue paying a monthly distribution at the current rate going forward.
The DI Wire reported earlier this month that the REIT’s board of directors elected T. Patrick Duncan as an independent director.
Cole Credit Property Trust IV invests in income-producing retail commercial real estate primarily leased to creditworthy tenants under long-term, net leases. The company’s portfolio is comprised of 828 properties, including ten properties owned through joint venture arrangements, totaling 22.3 million square feet and located in 45 states. As of June 30, 2015, the company has raised approximately $3.1 billion in investor equity.