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 slightly lower net asset value per share for its Class S and Class I common stock, as of August 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 August 31, 2020.
The REIT valued its Class S shares at $10.30 per share and its Class I shares at $10.35. Last month, Class S shares were valued at nearly $10.33 and Class I shares at $10.36 each. Shares were originally priced at $10.00 each, plus different fees and selling commissions.
Class S shares are available through brokerage and transactional-based accounts, while Class I shares are available to institutional investors.
As of August 31, 2020, the REIT had not sold any of its Class T shares or Class D shares, which are available through brokerage and transactional-based accounts, and fee-based programs, respectively.
The REIT said that the price movement was driven by modest write downs on its real estate equity investments and debt liabilities, which were partially offset by gains on its real estate-related debt investments. Income was generally in line with the prior month. Rent and interest income collections also remained steady, with August collections coming in at 93 percent compared to 95 percent the prior month after accounting for contractual rent deferrals of 1 percent for August and 2 percent for the prior month.
In December 2019, Oaktree REIT broke escrow with approximately $150 million in proceeds for its $2 billion offering. An affiliate, Oaktree Fund GP I L.P., purchased approximately $87 million in Class I shares.
As of August 31, 2020, the REIT had approximately $281.9 million investments in real properties, compared to $283.2 million the previous month. Investments in real estate-related securities totaled $77.3 million, compared to $76.1 million the previous month.
Cash and cash equivalents increased from $25.1 million at the end of July to $32 million at the end of August. Restricted cash and other assets totaled nearly $7.3 million, compared to $12.2 million last month.
The REIT’s debt obligations increased slightly from $181.8 million to $182.2 million month-over-month, while other liabilities increased from ($6.8 million) in July to ($8.3 million) in August.
The current portfolio is invested 72 percent in real property, 20 percent in real estate-related debt and 8 percent cash and cash equivalents. The company noted that its cash position increased as a percentage of the overall portfolio as a result of proceeds from securities sales and new subscriptions received during the month. Real property investments are split between multifamily (52 percent) and office (48 percent). The company’s leverage ratio decreased to 41 percent compared to 43 percent in the prior month.
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 August 2020, the REIT raised $150.7 million in investor equity.