Modiv Inc., a publicly registered non-traded crowdfunded real estate investment trust formerly known as RW Holdings NNN REIT Inc. and Rich Uncles NNN REIT Inc., has declared a $23.03 net asset value per share of its common stock as of December 31, 2020. The updated NAV is an approximate increase of 9.7 percent over the prior estimated NAV.
The updated NAV per share reflects the previously announced 1:3 reverse stock split effective February 1, 2021. Prior to the stock split, the estimated per share NAV would have been approximately $7.68 (i.e., 300 shares held at approximately $7.68 per share are now 100 shares at $23.03 per share, adjusted for rounding). The previous NAV per share was $7.00 as of April 30, 2020.
Additionally, the annual dividend following the 1:3 reverse stock split is now $1.05 per share, reflecting three times the previous annual dividend of $0.35 per share.
“Our concerted and focused efforts throughout 2020 are reflected in the increased per share estimated NAV,” said Aaron Halfacre, Modiv’s chief executive officer. “Since April of last year, we have sold six properties, renewed multiple leases, decreased the company’s total indebtedness and reduced the total number of shares outstanding, all of which had a positive impact on the NAV.”
The valuation was based upon the estimated market value of the REIT’s assets, less the estimated market value of its liabilities, divided by the total fully diluted shares outstanding at December 31, 2020. Cushman & Wakefield assisted with the valuation process.
The board of directors intends to determine an estimated per share NAV on a quarterly, as opposed to an annual basis going forward.
As reported by The DI Wire in early January, Modiv will only seek new capital sources that qualify as accredited investors for its current offering. The company also created a “13th dividend.” The dividend will begin at the end of 2021, and each year thereafter, and will be based on improvements in funds from operations for the year, the REIT said.
Modiv also plans to announce “multiple new real estate investment products” in 2021.
As of December 31, 2020, the REIT’s real estate investment portfolio consisted of 40 properties in 14 states, including 15 retail, 14 office, and 11 industrial properties, and a 72.7 percent tenant-in-common interest in an office property. The company raised $197.8 million in investor equity as of September 30, 2020.