The board of Moody National REIT II Inc., a publicly registered non-traded real estate investment trust, has approved a $23.32 net asset value per share for the company’s common stock as of December 31, 2018. The previous NAV per share was $23.19 as of December 31, 2017, as reported by The DI Wire. Shares were originally priced at $25.00 each.
The valuation is based on the estimated value of the REIT’s assets, less the estimated value of its liabilities, divided by the approximate number of shares outstanding, calculated as of December 31, 2018. Kendall Realty Consulting Group LLC provided property appraisals, and the company noted that the valuation was performed in accordance with practice guidelines established by the Institute of Portfolio Alternatives (formerly the Investment Program Association).
In other news, the company disclosed plans to purchase the Residence Inn Houston Medical Center, a 182-room hotel property located in Houston, Texas, from an affiliate for approximately $52 million.
The REIT intends to finance a portion of the purchase by assuming an existing $29.1 million loan secured by a lien and security interest in the property, and by obtaining an additional unsecured loan for $22.9 million from the seller.
Moody National REIT II has raised more than $277 million in investor equity since breaking escrow in July 2015. The REIT is sponsored by Moody National REIT Sponsor, an affiliate of the Moody National Companies, a full-service commercial real estate company that includes mortgage, development, management, realty, title and insurance divisions.
Moody National REIT II completed its merger with Moody National REIT I in September 2017, and as of the fourth quarter of 2018, owned a portfolio of $495.6 million in assets, including 14 select service hotels under the Marriott, Hilton, and Hyatt brands and one originated loan with a principal of $6.75 million. Moody National Advisor II LLC, the REIT’s advisor, currently funds all selling commissions, dealer manager fees, and stockholder servicing fees.