InvenTrust Increases Net Asset Value
InvenTrust Properties Corp., a publicly registered non-traded REIT formerly known as Inland American Real Estate Trust, declared a new estimated net asset value of $3.29 per share of the company’s common stock, as of May 1, 2017. Last year’s NAV was $3.14 per share, representing a 4.8 percent increase in per share value.
Duff & Phelps, a third-party valuation advisory firm, assisted with the valuation and provided a value range of $3.24 to $3.51 per share. The mid-point in that range was $3.37.
The Audit Committee recommended that the board approve a NAV lower than Duff & Phelps mid-point value to account for current U.S. economic conditions, including political effects on the economy, interest rate changes and overall market conditions; industry-specific trends and data (i.e., store closings and bankruptcies); and e-commerce sales growth and the perception of the internet’s impact on retail sales.
The per share NAV was based on the estimated market value of the company’s assets, less the estimated market value of its liabilities, divided by the total shares outstanding, and was performed in accordance with the IPA valuation guidelines.
The company noted that the new NAV does not take into account the value stockholders received from the 2015 spin-off and listing of Xenia Hotels & Resorts on the NYSE, or the 2016 spin-off of Highlands REIT into a separate non-traded REIT. These companies are independent companies with their own valuations.
InvenTrust Properties went effective in August 2005 and closed its offering in April 2009 after raising $8.6 billion, according to Summit Investment Trust. The company became a self-managed REIT in 2014 and as of December 31, 2016, owns and manages 71 multi-tenant retail properties and one non-core office property with a total investment cost of $3.7 billion.
