Hartman vREIT XXI Inc., a publicly registered non-traded real estate investment trust, has declared an estimated net asset value per share of its Class A and Class T common stock of $10.30 per share as of December 31, 2019.
Last year, the REIT declared an NAV per share of $11.70 for its Class A shares and $11.23 for Class T shares, as of December 31, 2018. Shares were originally priced at $10.00 each.
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, 2019.
As of December 31, 2019, the REIT owned 10 commercial properties valued at $86 million, a 2.47 percent interest valued at nearly $8 million in an affiliate special purpose entity which owns 39 commercial real estate properties, and 700,302 shares of common stock of Hartman Short Term Income Properties XX, an affiliate non-traded REIT, valued at nearly $8 million.
The REIT had other assets and liabilities totaling nearly $4 million, as well as notes payable of ($18.5 million). Class A and Class T shares outstanding totaled roughly $85 million.
“Investors are cautioned that the market for commercial real estate can fluctuate quickly and substantially and values of the company’s assets and liabilities are expected to change in the future…,” the company noted in a filing with the Securities and Exchange Commission. “As the company continues to raise capital from the sale of shares of common stock in its follow-on public offering and invests in additional real estate properties and real estate investments, its assets and liabilities, and the NAV per share of its common stock, will vary significantly from the values as of December 31, 2019.”
The new sale price of Class A and Class T common shares to the public is $11.44 and $10.95 per share, respectively, representing the NAV per share plus the applicable sales commissions and managing broker dealer fees. The price of shares sold through the distribution reinvestment plan is $10.30 per share.
Hartman vREIT XXI commenced its initial public offering in June 2016 for up to 25 million shares of common stock. In June 2019, the company registered a follow-on offering for up to $220 million of its Class A shares and Class T shares.
Hartman vREIT XXI invests in “value-oriented” commercial properties, including office, retail, industrial, and warehouse properties located primarily in Texas, that the company believes have the potential for growth in income and value from re-tenanting, repositioning, redevelopment, and operational enhancements. The REIT broke escrow on December 1, 2016 and had raised nearly $85 million in investor equity since inception, as of March 31, 2020.