Moody National REIT II Inc., a publicly registered non-traded real estate investment trust that invests in hospitality real estate, has declared a $19.45 net asset value per share of each of their Class A shares, Class T shares and Class I shares, as of Dec. 31, 2022. The previous NAV per share was $19.40 of as of Dec. 31, 2021.
Moody National says the recent estimated NAV per share value is based in part on appraisals of the fair value of our investments in hotel properties provided by Kendall Realty Consulting Group LLC, an independent appraiser.
The $19.45 per share represents a portfolio property value of $536.6 million. By comparison, in 2019, the REIT II portfolio appraised at $550.2 million.
The company announced that the portfolio has three loans maturing this year which they are currently working to refinance.
As of Dec. 31, 2022, total revenues for REIT II increased $20.8 million to approximately $77.4 million, which is an increase of 37% from 2021. REIT II’s year-end 2022 RevPAR finished up 37.4%. According to the company, REIT II is performing in-line with its competitive set, and ahead of the national average with respect to year-over-year RevPAR growth.
“While we welcome a 37% increase in both total revenue and RevPAR, as we’ve mentioned before, it is prudent to compare to pre-pandemic performance for perspective,” said CEO Brett Moody in a video message to stockholders. “In 2019, the REIT II RevPAR for the same period was $104.30, representing a 10.6% variance from 2022. While the gap is closing, the REIT II portfolio is still below 2019 RevPAR levels.”
According to Moody, the REIT II cash flow levels to date have not satisfied basic operational expenses such as deferred mortgage payments, payroll, taxes and insurance and other expenses. To meet the cash flow shortage, Moody National Capital LLC, an affiliate of the company’s sponsor, has had to loan REIT II a total of $30.1 million in four separate related party notes to meet REIT II’s operating expenses. However, as the REIT performance has continued to improve, the company says the need for subsequent cash advances diminishes.
As The DI Wire previously reported in April 2023, the company recently announced the sale of Bardin Greene apartments for $51 million.
Moody National Companies is a full-service commercial real estate company that includes mortgage, development, management, realty, title and insurance divisions. Founded in 1996, Moody National Companies has managed more than $2.2 billion in commercial real estate.
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