Phillips Edison Grocery Center REIT I Inc., a publicly registered non-traded real estate investment trust that focuses on grocery-anchored shopping centers, estimated a $10.20 net asset value per share of the company’s common stock, as of July 31, 2015.
“We are pleased with this valuation. We believe this validates the successful execution of our investment strategy,” said Jeff Edison, chairman of the board and chief executive officer.
The company engaged KPMG LLP to prepare a valuation report that provided an estimated fair value range of its real estate portfolio. KPMG estimated a fair value range of $2.61 billion to $2.72 billion, as of July 31, 2015.
In order to arrive at an estimated value per share, the company’s advisor, Phillips Edison NTR LLC, considered the estimated fair value range of the portfolio indicated by KPMG’s valuation report, and then, based on the company’s balance sheet as of July 31, 2015, added cash and cash equivalents of $10.5 million, deducted mortgages and loans payable of $746.4 million, and divided that amount by the 187.8 million outstanding shares of the company’s common stock and vested Class B units of the company’s operating partnership.
These calculations produced an estimated value per share in the range of $9.98 to $10.57. The board of directors ultimately approved $10.20 as the estimated value per share of the company’s common stock.
Phillips Edison Grocery Center REIT I, Inc. is a public non-traded REIT that seeks primarily to acquire and manage well-occupied grocery-anchored neighborhood shopping centers with a mix of national and regional retailers selling necessity-based goods and services in strong demographic markets throughout the United States. The company owns and manages a retail portfolio consisting of 147 shopping centers totaling approximately 15.5 million square feet.