The board of The Parking REIT Inc., a publicly registered non-traded real estate investment trust, has approved an estimated per share net asset value of $24.61 as of May 29, 2018.
The estimated per share NAV was based on the estimated value of the REIT’s assets less the estimated value of the company’s liabilities, divided by the approximate number of shares outstanding on a fully diluted basis, calculated as of May 29, 2018.
At the time of appraisal, The Parking REIT had ownership interests in 46 parking assets. To assist the valuation, the company engaged Parking Property Advisors LLC, an independent third-party firm, to provide a valuation analysis for 43 of its 46 assets.
Of the remaining three assets, one asset was purchased in the first quarter of 2018, and for the remaining two assets, the company used their most recent book values as of the December 2017 merger between MVP REIT Inc. and MVP REIT II Inc. MVP II is the surviving entity of the merger and was renamed “The Parking REIT.” Shares of MVP II were originally sold for $25.00 each.
As of May 29, 2018, the total value of the appraised properties was approximately $331.8 million, a 9.84 percent increase over the total purchase price of $302 million.
The Parking REIT board suspended its share repurchase plan effective June 28th, other than for repurchases in connection with a shareholder’s death. The Parking REIT plans to utilize the cash savings to further its business operations. The board may reinstate the share repurchase plan in the future.
The Parking REIT Inc. invests primarily in parking lots and garages in the United States.