Comrit Investments I, a Tel Aviv-based investment fund, has launched an unsolicited tender offer to purchase up to 337,268 shares of Steadfast Apartment REIT Inc.’s common stock at a price of $11.86 per share in cash. The non-traded REIT is remaining neutral and not making a recommendation on whether investors should accept or decline Comrit’s offer, which expires on March 28, 2019,
Steadfast Apartment REIT has a net asset value per share of $15.84, as of December 31, 2018, approximately 25 percent higher than Comrit’s offer price.
The REIT currently offers stockholders liquidity through its share repurchase program at 93 percent of the most recent estimated NAV per share. The annual limit on the number of shares repurchased under the plan during any calendar year is 5 percent of the average number of shares outstanding during the prior calendar year, and a $2 million limit on shares that may be repurchased during any quarter.
Steadfast Apartment REIT, which invests in multifamily properties in targeted markets throughout the United States, has invested more than $1.5 billion in 34 apartment communities in 11 states. The company closed its public offering in March 2016 and has raised $788 million in investor equity, as of December 31, 2018.