The board of Cole Office & Industrial REIT Inc. (CCIT II), a publicly registered non-traded real estate investment trust, approved a $10.58 per share net asset value of the company’s Class A and Class T common stock as of December 31, 2017. This represents a 2.5 percent increase over last year’s NAV per share of $10.32.
“The office and industrial net-lease sector continues to be strong, and this is reflected in CCIT II’s valuation,” said CFO Nathan DeBacker. “The portfolio has built-in rent growth and an average remaining lease term of nearly 10 years, along with 100 percent occupancy. Additionally, we believe that because our tenants value the mission-critical and strategic nature of these locations, several have expanded their properties, providing additional employment and economic investment in their local communities.”
Cushman & Wakefield assisted with the process and provided a valuation range of $10.06 to $11.63 per share. The estimated NAV per share of $10.58 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 company’s assets, less the estimated market value of its liabilities, divided by the total shares outstanding, and was performed in accordance with Investment Program Association valuation guidelines.
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, according to Summit Investment Research. The company’s $1 billion portfolio is comprised of 36 properties totaling 11.4 million rentable square feet. Cole Office and Industrial REIT is operated by CCO Group, LLC, a subsidiary of CIM Group.