The board of Cole Credit Property Trust V Inc., a publicly registered non-traded real estate investment trust, approved a $22.18 net asset value per share of the company’s Class A and Class T common stock as of December 31, 2017. Last year’s valuation was $24.00 per share, which represents a decrease of 7.6 percent.
“While the perceived value of some retail real estate has shifted, impacting CCPT V’s valuation, this portfolio continues to perform well,” said chief financial officer Nathan DeBacker. “CCPT V maintains a 98.9 percent occupancy rate, a strong tenant line-up and high-quality real estate. Many of CCPT V’s tenants, including service providers, discount retail and restaurants, don’t directly compete with online retailers.”
Duff & Phelps, an independent third-party consulting firm, provided a valuation range of $20.87 to $23.39 per share. The estimated per share NAV of $22.18 for Class A and Class T shares was determined and approved by the board based on the recommendation of its valuation committee, which is comprised solely of independent directors.
The valuation was based upon the estimated market value of the REIT’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.
In other company news, the REIT entered into a new $350 million credit agreement, comprising $220 million in term loans and up to $130 million under a revolving credit facility. The credit facility may be increased up to $750 million. The term loans mature on March 27, 2023 and the revolving facility matures on March 28, 2022.
JPMorgan Chase Bank N.A. acts as administrative agent, letter of credit issuer, joint lead arranger and joint book runner for the credit facility; Bank of America NA acts as syndication agent and line of credit issuer; Merrill Lynch Pierce Fenner & Smith Inc. and SunTrust Robinson Humphrey Inc. act as joint lead arrangers and joint book runners.
Cole Credit Property Trust V invests in retail commercial real estate primarily leased to creditworthy tenants under long-term net leases. The company has raised $409.6 million in investor equity since March 2014 and oversees an approximately $635 million portfolio of 136 properties. Cole Credit Property Trust V is operated by CCO Group LLC, a subsidiary of CIM Group.
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