The board of Cole Credit Property Trust IV Inc., a publicly registered non-traded real estate investment trust, has approved a $9.37 per share net asset value of the company’s common stock as of December 31, 2017. The latest NAV per share is a 7 percent decrease compared to the previous valuation of $10.08 per share as of December 31, 2016.
“While the perceived value of some retail real estate has shifted, impacting CCPT IV’s valuation, this portfolio maintains strong diversification and performance,” said CFO Nathan DeBacker. “The necessity, discount and service-oriented retail tenants in CCPT IV’s portfolio provide important goods, services and employment opportunities to communities around the country.”
The valuation is based on the estimated value of the company’s assets, less the estimated market value of its liabilities, divided by the total shares outstanding.
The company engaged independent third party Duff & Phelps LLC to assist with the process which was performed within Investment Program Association guidelines. Duff & Phelps provided a valuation range of $9.10 to $10.14 per share, with a midpoint of $9.62 per share.
Cole Credit Property Trust IV invests in income-producing retail commercial real estate primarily leased to creditworthy tenants under long-term, net leases. The REIT’s $5.1 billion portfolio is comprised of 909 properties totaling 26.9 million square feet, and as of December 31, 2017, the company had raised approximately $3.4 billion in investor equity. Cole Credit Property Trust IV is operated by CCO Group LLC, a subsidiary of CIM Group.