RW Holdings NNN REIT Inc., a publicly registered non-traded real estate investment trust formerly known as Rich Uncles NNN REIT Inc., has suspended its primary offering, which it indicated is temporary. The primary offering will remain suspended until the board approves its resumption.
The REIT said that the offering suspension is related to its plans to declare a revised net asset value per share later this month, as well as a revised distribution rate, and expects that both will be lower due to the impact of the COVID-19 pandemic. The company’s distribution reinvestment plan and share repurchase program remain open at this time.
“Given our inability to collect 100 percent of contractual rents, we are re-evaluating our current distribution rate…,” said RW Holdings NNN REIT in a filing with the SEC. “We have been paying a distribution well-above market average. However, at a time when even the largest companies are suffering economically, we know that we need to establish a sustainable distribution policy for what clearly has become the ‘new normal.’”
In February 2020, the company declared an NAV per share for its Class C and Class S common stock of $10.27, as of December 31, 2019, which was the first valuation following its merger with affiliated non-traded REIT, Rich Uncles Real Estate Investment Trust I.
RW Holdings NNN REIT also indicated that the pandemic has impacted its ability to file its quarterly financial report for the first quarter of 2020, due on May 15, 2020, and expects to file no later than June 29, 2020.
RW Holdings NNN REIT’s real estate portfolio totals 2.4 million square feet and consists of 45 properties (comprising 19 retail properties, 14 office properties and 12 industrial properties) located in 14 states. The portfolio also includes one parcel of land, which currently serves as an easement to one of the company’s office properties; and an approximate 72.7 percent tenant-in-common interest in an office property in Santa Clara, California.