Moody National REIT II Inc., a publicly registered non-traded real estate investment trust, has resumed offering shares in its $1 billion initial public offering after suspending sales last month in order to implement a number of changes to its structure and the compensation paid to its advisor.
The REIT’s board approved an increase to the distribution rate for the first quarter 2018 to 7 percent based on a purchase price per share of $25.04 ($1.7528 per share per year, or approximately $0.004802 per share per day). The distribution will be paid monthly. Last year stockholders received an annual distribution of 6.29 percent based on a purchase price of $27.82 ($1.75 per share per year, or approximately $0.00479 per share per day).
The REIT is reducing selling commission on its Class A shares from 7 percent of the sales price to 6 percent. Moody National Advisor II LLC, the REIT’s advisor, intends to pay all selling commissions, dealer manager fees and stockholder servicing fees for Class A, Class D, Class I and Class T shares. The acquisition fee paid to the advisor was increased to recoup some of these payments.
In connection with the now effective offering, the company has reinstated its distribution reinvestment plan and share repurchase plan.
Moody National REIT II has raised more than $220 million in investor equity since breaking escrow in July 2015 and recently completed a merger with affiliated REIT, Moody National REIT I. REIT II’s investment portfolio consists of approximately $465 million in assets, including 14 select service hotels under the Marriott, Hilton, and Hyatt brands located in major metropolitan markets throughout the U.S, and three notes receivable with a combined principal of $23.7 million.
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. Founded in 1996, Moody National Companies has managed more than $2 billion in commercial real estate.