The board of Cole Credit Property Trust IV Inc., a publicly registered non-traded real estate investment trust, has approved an $8.65 per share net asset value of the company’s common stock as of December 31, 2018. The updated valuation will appear on stockholder’s first quarter 2019 account statements.
The board previously approved a per share NAV of $9.37 as of December 31, 2017, $10.08 as of December 31, 2016, $9.92 as of September 30, 2016, and $9.70 as of August 31, 2015.
The valuation was based on the estimated market value of the REIT’s assets less the estimated market value of its liabilities, divided by the total number of shares outstanding.
Duff & Phelps LLC assisted with the process and estimated a $8.22 to $9.11 per share per share valuation range with a midpoint of $8.65 per share. The valuation was performed within practice guidelines established by the Institute of Portfolio Alternatives (formerly the Investment Program Association).
Beginning March 26, 2019, shares issued through the distribution reinvestment plan will be priced at $8.65 per share, and the new valuation will serve as the most recent NAV per share for the REIT’s share redemption program.
In other company news, Avraham Shemesh was appointed as a director until the company’s next annual meeting and until his successor is elected. Sheemesh currently serves as the CEO, president and chairman of Cole Office and Industrial REIT Inc. (CCIT II) and Cole Credit Property Trust V Inc., two affiliated non-traded REITs.
He is a co-founder and principal of CIM Group LLC and is involved in the company’s acquisition process and provides acquisition guidance across its platforms. He serves on CIM’s investment and real assets management committees and oversees teams essential to acquisitions, portfolio management and internal and external communication.
The company noted in a filing with the SEC, “Shemesh was selected to serve as a director because of his significant experience with the real estate acquisition process and strategic planning as a result of his experience with CIM…as well as his leadership roles at CIM and CIM Commercial Trust Corporation.”
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 launched its offering in January 2012 and raised more than $3 billion prior to closing the offering in April 2014, according to Summit Investment Research. The REIT’s $5 billion portfolio was comprised of 896 properties, as of the third quarter of 2018. Cole Credit Property Trust IV is operated by CCO Group LLC, a subsidiary of CIM Group.