Griffin Capital Essential Asset REIT Inc., a publicly registered non-traded real estate investment trust, has declared a new quarterly net asset value per share of its common stock, as of December 31, 2020.
The average NAV per share across all share classes was $8.95 as of December 31, 2020, compared to $8.90 the previous quarter.
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 outstanding shares, all as of December 31, 2020. ALPS Fund Services Inc., a third-party firm, assisted with the valuation process.
Gross real estate investments totaled $4.28 billion for the fourth quarter compared to the previous quarter’s total of $4.3 billion. Investments in unconsolidated entities remained flat at $4.1 million quarter over quarter. Other assets decreased from $158.8 million to $157.2 million quarter-over-quarter.
Total debt decreased slightly from $2.17 billion during the third quarter to $2.14 billion during the fourth quarter. The total number of shares outstanding increased from 262.1 million to 262.2 million quarter over quarter.
The REIT offers Class T, Class S, Class D, Class I, Class E, and IPO shares (which includes Class A, Class AA, and Class AAA shares).
On an individual basis, Class T shares had an NAV of $9.07 as of December 31, 2020, compared to $9.02 the previous quarter.
Class S shares had an NAV of $9.07 per share, compared to $9.01 the previous quarter.
Class D shares had an NAV of $9.06 per share, compared to $9.00 the previous quarter.
Class I shares had an NAV of $9.06 per share, compared to $9.00 the previous quarter.
Class E shares had an NAV of $8.97 per share, compared to $8.92 the previous quarter.
IPO shares, which includes Class A, Class AA, and Class AAA shares, had an NAV per share of $8.89, compared to $8.84 the previous quarter.
In early November 2020, Griffin Capital Essential Asset REIT and Cole Office & Industrial REIT announced a $1.2 billion stock-for-stock transaction where the Griffin REIT will acquire the Cole REIT and own a portfolio of assets valued at approximately $5.8 billion.
According to the companies, the merger will combine similar portfolios of single-tenant, office and industrial properties with long-term, net leases to “high-quality” corporate tenants. The combined company will be comprised of 125 properties totaling 31 million square feet consisting of 86 percent office properties and 14 percent industrial properties.
Earlier this month, the REIT sold a 207,900-square-foot office property located in Simi Valley, California for $30 million. The property, located at 450 American Street, is 100 percent leased to Bank of America N.A through December 2025.
In April, the REIT reduced the distribution rate paid to investors and transitioned to publishing its net asset value per share on a quarterly rather than daily basis. The company made the changes because it believed that it was prudent to enact a more conservative cash management strategy in light of the current environment, and in consideration of its future strategic positioning and plans.
Griffin Capital Essential Asset REIT suspended its follow-on offering, share redemption program, and distribution reinvestment plan in order to evaluate a potential strategic transaction, as reported by The DI Wire in February 2020.
Griffin Capital Essential Asset REIT’s portfolio consists primarily of single tenant business essential properties throughout the United States. As of September 30, 2020, the REIT’s portfolio consisted of 122 office and industrial buildings, totaling approximately 27 million rentable square feet. The REIT became self-managed in December 2018, following the all-stock merger transaction with its affiliate, Griffin Capital Essential Asset REIT II Inc.