Cottonwood Communities Inc., a publicly registered non-traded real estate investment trust focused on multifamily real estate investments, has reported the monthly net asset value per share/unit of its common stock and operating partnership units, as of September 30, 2021.
As of September 30, 2021, the NAV per share for the outstanding Class A and Class TX shares was approximately $15.48, a 20.1 percent increase over the prior month’s NAV of $12.89. Shares were originally priced at $10.00 each plus applicable selling commissions and fees.
“The continued price movement is reflective of observed increases in the values of multifamily assets across the country, particularly in many of the growth markets where we have investments,” the company said in an SEC filing. “Cap rates have moved favorably. Rental rates across our portfolio of operating properties have also grown substantially over the course of the year, with significant growth in recent months.”
Investments in multifamily operating properties increased from nearly $1.60 billion in August to $1.72 billion in September. Investments in multifamily development properties increased from $155.5 million to $185.9 million, month-over-month, while investments in real estate-related structured investments increased from $54.2 million to $56.4 million.
Other assets increased from $40 million to $53.1 million, and cash and cash equivalents increased from $9.2 million in August to $12.9 million in September.
Secured real estate financing increased from ($865.9 million)in August to ($868.5 million) in September, and subordinated notes remained unchanged at ($48.6 million). Preferred equity increased from ($219.3 million) to ($229 million) month-over-month. The REIT had 54.77 million shares outstanding in September, compared to 54.85 million in August.
Cottonwood Communities’ portfolio includes 33 multifamily apartment communities in 13 states with 9,746 units.