The board of Moody National REIT II Inc., a publicly registered non-traded real estate investment trust, has approved a $23.50 net asset value per share for the company’s common stock as of December 31, 2019. The REIT’s previous NAV per share was $23.32 as of December 31, 2018. 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, 2019.
Moody National REIT II recently suspended its public offering and investor distribution payments, as well as the distribution reinvestment plan and share repurchase program effective on April 6, 2020. The company cited decreased demand for hotel properties during the global coronavirus (COVID-19) pandemic and indicated that the suspensions would be temporary.
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 for Portfolio Alternatives (formerly the Investment Program Association).
As of December 31, 2019, the REIT has assets totaling $576 million, total liabilities of $264.6 million, and 13.3 million shares outstanding.
Moody National REIT II completed its merger with Moody National REIT I in September 2017, and as of the fourth quarter of 2019, owned an investment portfolio comprised of 15 hotels valued at $549.4 million and securities totaling $5.9 million. As of December 31, 2019, the company had raised a total of $226.2 million in investor equity from its initial public offering and follow-on offering.