The board of Cole Office & Industrial REIT (CCIT II) Inc., a publicly registered non-traded real estate investment trust, has approved an estimated per share net asset value of $9.92 for the company’s Class A and Class T shares of common stock as of March 31, 2020. Shares were originally sold for $10.00 each.
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.
Cole Office & Industrial REIT last reported NAV per share was $10.06 as of December 31, 2019. Previously, the company declared an NAV per share of $11.03 as of December 31, 2018, and after paying a $1.03 per share special cash distribution in December 2019, the valuation was reduced to $10.00.
The December 2019 special distribution stemmed from the April 2019 sale of 18 industrial properties to publicly traded REIT, Industrial Logistics Properties Trust (NASDAQ: ILPT), for $624.7 million.
Duff & Phelps assisted with the valuation process and calculated a $9.41 to $10.46 per share valuation range with a midpoint of $9.92. The REIT said that the valuation was performed within practice guidelines established by the Institute for Portfolio Alternatives (formerly the Investment Program Association).
As of March 31, 2020, the company had total assets of approximately $1.10 billion, total liabilities of nearly $430.9 million, and 67.3 million shares outstanding. For comparison, the previous quarter, the company had $1.13 billion in total assets, $454.7 million in total liabilities, and nearly 67.3 million shares outstanding.
Class A and Class T shares now issued through the distribution reinvestment plan will be priced at $9.92 per share, and the new valuation will serve as the most recent NAV per share for its share redemption program.
Cole Office and Industrial REIT commenced operations in September 2013 and invests primarily in single-tenant necessity office and industrial properties that are leased to creditworthy tenants under long-term, net leases. The company closed its primary offering in September 2016 after raising $672 million in investor equity. Cole Office and Industrial REIT is operated by CCO Group LLC, a subsidiary of CIM Group, a real estate and infrastructure owner, operator and lender.