The board of Griffin Capital Essential Asset REIT II Inc., a publicly registered non-traded real estate investment trust, has established an estimated value per share of $9.37 for all share classes, as of December 31, 2016.
The REIT engaged Duff & Phelps, an independent third-party valuation firm, to appraise the REIT’s portfolio and to provide the board with a range of estimated values per share, calculated as of December 31, 2016.
The board approved an estimated value per share of $9.37 for all share classes based on the estimated value of the REIT’s assets less the estimated value of the REIT’s liabilities, or net asset value, divided by the approximate number of outstanding shares. This methodology complies with the Investment Program Association’s practice guideline regarding valuations of publicly registered non-listed REITs.
“We are happy to announce the initial valuation of the REIT and feel this estimated value per share represents our dedication to continue to provide value to our stockholders through the investment in business essential, single-tenant, net-leased properties,” said Kevin Shields, Griffin Capital’s chairman and chief executive officer. “We are particularly pleased with the composition of the REIT’s portfolio, particularly related to the REIT’s build-to-suit transactions, which were priced well in advance of their respective acquisitions and ‘renovation-to-suit’ transactions, which were acquired with favorable acquisition prices.”
Griffin Capital Essential Asset REIT II, which closed to new subscriptions on January 20th, invests in single tenant business essential properties throughout the United States, diversified by corporate credit, physical geography, product type and lease duration. The REIT has acquired 34 office and industrial buildings totaling approximately 7.2 million rentable square feet and asset value of approximately $1.1 billion. As of December 27, 2016, the company has raised approximately $252.3 million from the sale of class A shares, approximately $438.7 million from the sale of class T shares, and approximately $7 million from the sale of class I shares.