Cottonwood Communities Determines First Net Asset Value Per Share

Cottonwood Communities Inc., a publicly registered non-traded real estate investment trust, has declared a post-merger net asset value per share.

Cottonwood Communities Inc., a publicly registered non-traded real estate investment trust, has declared a net asset value per share of $11.06 per share, as of May 7, 2021, the effective date of its recent merger with Cottonwood Residential II Inc. and its operating partnership, Cottonwood Residential O.P. LP.

As previously reported, the merger resulted in a $1.6 billion multifamily REIT comprised of 35 investments located in 12 states.

The NAV per share is based on the estimated value of the company’s assets, less the estimated value of its liabilities divided by the number of fully-diluted shares/units outstanding. Altus Group U.S. Inc., a third-party firm, assisted with the valuation process.

Cottonwood Communities’ total debt to total assets ratio is 52 percent based on the new appraised values following the merger.

“We are pleased with how the multifamily real estate sector has fared over the past year, but more importantly how our operations and property management teams have remained diligent and have adapted to challenging circumstances by finding creative ways to maintain and drive revenues where possible” said Daniel Shaeffer, chief executive officer.

According to a filing with the Securities and Exchange Commission, as of May 7, 2021, investments in operating properties totaled nearly $1.2 billion, investments in development properties equaled $136 million, and investments in real-estate related structured investments totaled roughly $43.4 million. Operating company, land and other net current assets equaled $37.8 million, while cash and cash equivalents totaled $17.6 million.

Secured real estate financing equaled nearly ($693 million), subordinated unsecured notes totaled ($48.6 million), and preferred equity totaled ($195.5 million). There were approximately 44 million shares outstanding, as of May 7, 2021.

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