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 increased its net asset value per share for its Class S and Class I common stock, as of May 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 May 31, 2020.
As of May 31, 2020, the REIT valued its Class S shares at $10.28 per share and its Class I shares at $10.30. Last month, Class S shares were valued at nearly $10.16 and Class I shares at $10.19 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 May 31, 2020, the REIT had not sold any Class T shares or Class D shares, which are available through brokerage and transactional-based accounts, and fee-based programs, respectively.
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 May 31, 2020, the REIT had approximately $282.4 million investments in real properties, compared to $284.5 million the previous month. Investments in real estate-related securities totaled $75.2 million, compared to $64.9 million the previous month.
Cash and cash equivalents increased from $24.8 million at the end of April to $26.5 million at the end of May. Restricted cash and other assets totaled $7.1 million, compared to $7.9 million last month.
The REIT’s debt obligations remained flat month-over-month at $181.2 million, while other liabilities decreased from ($9.1 million) in April to ($8.6 million) in May.
As of May 31, 2020, the REIT’s portfolio consisted of $358 million in total fair market value, split 40 percent, 39 percent and 21 percent across multifamily, office and real estate-related debt investments, respectively.
“We believe our liquidity position remains strong with a modest leverage ratio of 43 percent and no outstanding borrowings against any of our debt positions,” the REIT noted in an SEC filing. “As of May 31, 2020, our cash and tradable securities portfolio represented 14 percent and 15 percent of ending NAV, respectively.”
The company also posted a COVID-related rent update, indicating that it collected more than 93 percent of rent and interest income for May 2020 compared to 93 percent the prior month. The REIT said that so far June is trending on pace with May collections.
Multifamily properties were 91 percent leased and saw rent collections of 95 percent in May compared to 94 percent in April. The company commenced payment plans with 3 percent of tenants.
Office properties were 88 percent leased, with an average weighted remaining lease term of 5.1 years. Rent collections totaled 89 percent for May, unchanged from the prior month. The company noted that 8 percent of the uncollected amount for May came from a single tenant, and the REIT is negotiating a temporary rent deferral plan.
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 May 2020, the REIT raised $150.7 million in investor equity.