Cole Credit Property Trust V Declares $24.00 Estimated Share Value
Cole Credit Property Trust V Inc., a publicly registered non-traded real estate investment trust, announced that its board of directors approved a per share net asset value of its common stock of $24.00 as of February 29, 2016.
“We believe that CCPT V is well-positioned based on its portfolio metrics and the current real estate cycle,” said Bill Miller, chief executive officer and president of Cole Capital. “Today’s announcement of a NAV is another step in embracing the industry’s evolution, increasing transparency and meeting the needs of both our shareholders and advisors.”
In anticipation of the implementation of FINRA Regulatory Notice 15-02 that went into effect yesterday, the company engaged Duff & Phelps LLC, an independent consulting firm that specializes in providing real estate valuation services.
Using the NAV methodology, Duff & Phelps arrived at a fair value range of $21.67 to $25.07 per share. The estimated per share NAV was determined and approved by the board based on the recommendation of its valuation committee, which is comprised solely of independent directors, including the independent chairman of the board.
The valuation was based upon the estimated market value of CCPT V’s assets, less the estimated market value of the company’s liabilities, divided by the total shares outstanding, and was performed in accordance with the valuation guidelines established by the Investment Program Association Practice Guideline 2013-01. The estimated NAV does not reflect any “portfolio premium,” nor does it reflect an enterprise value for the company. This is the first estimated NAV valuation that the company has conducted. The board intends to determine an estimated per share NAV on at least an annual basis going forward.
Shares of common stock were originally sold for $25.00 each, but will now be priced at $26.37 each (NAV plus 7 percent sales commission and 2 percent dealer manager fee).
To date, CCPT V has paid 24 consecutive monthly distributions to its shareholders, with a current distribution rate equal to an annualized amount of $1.575 per share. The distribution amount per share declared by the board is not affected by the determination of the NAV.
Cole Credit Property Trust V invests in income-producing retail commercial real estate primarily leased to creditworthy tenants under long-term, net leases. The company has raised $249.6 million in investor equity since its inception in March 2014, according to the most recent Stanger Market Pulse. CCPT V owns 112 properties totaling 2.3 million square feet located in 28 states.
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