RW Holdings NNN REIT Details Upcoming Company Changes
RW Holdings NNN REIT Inc., a publicly registered non-traded real estate investment trust formerly known as Rich Uncles NNN REIT Inc., has detailed a number of company changes and updates in a recent letter to shareholders.
RW Holdings NNN REIT Inc., a publicly registered non-traded real estate investment trust formerly known as Rich Uncles NNN REIT Inc., has detailed a number of company changes and updates in a recent letter to shareholders.
The company plans to release its next net asset value per share on January 29, 2021. Going forward, the REIT will follow a quarterly NAV schedule, rather than annual, whereby after the end of each quarter it will publish a revised NAV.
Share repurchase requests will be accepted through January 22, 2021 at its current $7.00 per share NAV and are eligible for payment on January 27, 2021. After January 22, 2021, the REIT intends to only seek new capital sources that qualify as accredited investors.
In May 2020, RW Holdings NNN REIT revised its distribution rate to $0.35 per share per year, paid monthly. The company noted that it will only pay a dividend that is fully supported by funds from operations going forward.
The company has also created a “13th dividend,” although it does not anticipate increasing the current dividend distribution rate until there are increases in total portfolio rental revenue. The dividend will begin at the end of 2021, and each year thereafter, and will be based on the success of the company’s business activities for the year.
RW Holdings NNN REIT plans to change its name “to better reflect its mission of being both innovative and investor-first in all of our strategic decisions.” The company will also declare a 1:3 reverse stock split effective February 1, 2021, immediately following the announcement of its new NAV (i.e., 300 shares held at $7.00/share would then be 100 shares at $21.00/share).
Additionally, the REIT said that it intends to announce “multiple new real estate investment products” in the coming months. In the last 12 months, RW Holdings NNN REIT has acquired its affiliate Rich Uncles REIT I, as well as two online investment platforms – REITLess, and BuildingBITs.
“Given the combination of our deep understanding of both the crowdfunding and real estate markets, as well as the strength of our senior leadership team and our shareholder-owned business model, we are well positioned to make strategic real estate-related investments in fin-tech and prop-tech companies that will benefit from this new phase of growth within the industry,” the company stated in the letter. “Equally, we believe growth opportunities exist in the consolidation of the non-listed REIT industry. All of these avenues of growth complement our ongoing discipline of acquiring income-producing real estate assets.”
RW Holdings NNN REIT was formed in 2015 to primarily invest in a portfolio of income-producing properties located in the United States, which are leased to creditworthy tenants under long-term net leases. As of September 30, 2020, the REIT’s real estate investment portfolio consisted of 42 properties in 14 states, including 16 retail, 14 office, and 12 industrial properties, and a 72.7 percent tenant-in-common interest in an office property. RW Holdings NNN REIT has raised $193.8 million in investor equity as of June 30, 2020.
