The board of Cole Credit Property Trust IV Inc., a publicly registered non-traded real estate investment trust, announced an estimated net asset value of $9.92 per share for the company’s common stock as of September 30, 2016.
The new NAV is an increase over the previous $9.70 per share value determined by the board as of August 31, 2015, which was the first valuation that the REIT conducted.
“CCPT IV continues to perform well with its net‐leased single tenant assets and anchored shopping centers,” said Thomas Roberts, chief executive officer and president of CCPT IV. “Based on the portfolio’s overall credit quality, diversification and tenant roster, we believe that CCPT IV is well‐positioned in today’s real estate market as we continue to work to maximize its value on behalf of our stockholders.”
The company engaged Duff & Phelps, LLC, an independent global advisory and corporate finance consulting firm that specializes in providing real estate valuation services, to assist the board with determining an estimated per share NAV and a valuation range of CCPT IV.
Using the NAV methodology, Duff & Phelps arrived at a valuation range of $9.40 to $10.47 per share. The estimated per share NAV of $9.92, which is the approximate mid‐point of the valuation range from Duff & Phelps, was determined and approved by the board based on the recommendation of its valuation committee.
The board is ultimately and solely responsible for the establishment of the estimated per share NAV. The estimate was based on the estimated market value of the company’s assets, less the estimated market value of its liabilities, divided by the total shares outstanding, and was performed in accordance with the valuation guidelines established by the Investment Program Association.
To date, the REIT has paid 55 consecutive monthly distributions to its stockholders, with a current distribution rate of 6.25 percent , and expects to continue to pay a monthly distribution at the current rate going forward.
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 882 properties, including nine properties owned through joint venture arrangements, totaling 26.5 million square feet. As of September 30, 2016, the company has raised approximately $3.2 billion in investor equity.