The board of Cottonwood Multifamily REIT I Inc., a Regulation A+ real estate investment trust, has approved an updated net asset value of $11.31, as of September 30, 2018, for the company’s common stock. This represents a 2.7 percent increase from the previous NAV per share of $11.01, of December 31, 2017. Shares originally sold for $10.00 each.
The company’s current distribution rate remains unchanged at $0.575 per share on an annualized basis through September 30, 2018.
Cottonwood Multifamily REIT I owns a portfolio of three multifamily properties located in Tampa, Atlanta, and Charlotte, that were purchased for a combined $140.9 million.
The REIT owns a 90 percent interest in the properties, which were purchased in joint ventures with affiliates of Cottonwood Residential O.P LP. The properties have a combined appraised market value of $152.9 million as of September 30, 2018 and were appraised by Cushman & Wakefield of North Carolina, Newmark Grubb Knight Frank, and CBRE – Valuation & Advisory Services.
The REIT increased same store NOI growth by 13.1 percent (year-to-date through June 30, 2018) compared to the same period in 2017.
“We are pleased with the consistent NAV increases for the REIT and believe that our focus on high-quality markets will continue to offer meaningful potential for value appreciation” said Enzio Cassinis, chief executive officer of the REIT. “We remain focused on our best-in-class management practices to enhance occupancy and rent growth, while optimizing expense management – the results of which, will help drive further NOI growth.”
The company noted that the NAV considered metrics such as cash flows, comparable sales metrics, capitalization rates, loan balances, interest rates and financial projections.
Cottonwood Multifamily REIT I commenced its $50 million private offering in May 2016 and had sold all of the 5 million shares of its common stock by April 2017.
Cottonwood Residential O.P. is a fully integrated real estate sponsor, owner and manager focused on the multifamily asset class. As of September 30, 2018, Cottonwood Residential manages approximately 13,000 apartments units across 10 states, representing approximately $2 billion in assets under management.