The board of Inland Residential Properties Trust Inc., a publicly registered non-traded real estate investment trust, approved an estimated per share net asset value for the company’s shares of common stock as of December 31, 2017. This is the first time the REIT has determined an estimated per share NAV.
The estimated NAV per share for Class A shares is $23.15, Class T shares is $24.32, and Class T-3 shares is $23.55. The per share NAV estimates represent an increase over the net investment value shown on investor account statements of 2.9 percent, 8 percent and 4.6 percent, respectively.
“As the first company in the industry to eliminate all real estate-related transaction fees, we believe this fee structure will have a positive impact on entity-level performance and emphasizes Inland Investments’ commitment to standing shoulder-to-shoulder with our investors,” said Mitchell Sabshon, chief executive officer and president of Inland Real Estate Investment Corporation. “Eliminating transaction-based fees has created a business model that allows us to better align our interests with those of our REIT investors.”
Inland Residential engaged valuation firm Duff & Phelps LLC to assist with the valuation, which was conducted in accordance with Investment Program Association guidelines. The per share NAVs are the midpoint of the range of values provided by Duff & Phelps in its valuation report.
Inland Residential Properties Trust’s $1 billion offering was declared effective in February 2015 and raised approximately $47 million in investor equity, as of the third quarter 2017, according to Summit Investment Research. The company invests in multifamily properties located primarily in the top 100 U.S. metropolitan statistical areas and owns three assets purchased for $104.5 million.