Oaktree Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust sponsored by alternative investment manager Oaktree Capital Management L.P., has declared a higher net asset value per share for its Class S and Class I common stock, as of December 31, 2020.
The NAV per share is based on the estimated value of the company’s assets, less the estimated value of its liabilities divided by the number of outstanding shares, all as of December 31, 2020.
The REIT’s Class S shares were valued at $10.50 per share and its Class I shares at nearly $10.62. The previous month, Class S shares were valued at approximately $10.44 and Class I shares at $10.54 each. Shares were originally priced at $10.00 each, plus applicable upfront selling commissions and dealer manager fees.
Class S shares are available through brokerage and transactional-based accounts, while Class I shares are available to institutional investors. The REIT also offers Class T or Class D shares, which are available through brokerage and transactional-based accounts, and fee-based programs, respectively, but had not sold any as of December 30, 2020.
Oaktree REIT noted that the monthly NAV increase was driven by appreciation on its multifamily investments and mark-to-market increases on its real estate-related securities positions. Rent and interest income collections increased by 1 percent, with December collections reported at 94 percent compared to 93 percent the prior month. In early December, the REIT purchased Arbors of Las Colinas, a 408-unit multifamily property in Dallas, Texas for $63.5 million.
As of December 31, 2020, the REIT had approximately $353.1 million investments in real properties, compared to $284.8 million the previous month. Investments in real estate-related securities totaled $74.5 million, compared to $74.8 million the previous month.
Cash and cash equivalents decreased from $46.4 million at the end of November to $32.3 million at the end of December. Restricted cash and other assets totaled $9.5 million in December, compared to $7.5 million the previous month.
The REIT’s debt obligations increased from ($182.7 million) to ($229.5 million) month-over-month, while other liabilities decreased from ($9.3 million) in November to ($8.3 million) in December.
Oaktree Real Estate Income Trust plans to invest primarily in what it deems as “high quality” commercial real estate assets located across the top 50 markets in the United States. As of midJanuary 2021, the REIT raised $210.3 million in investor equity.