Steadfast Apartment REIT Inc., a publicly registered non-traded real estate investment trust, has declared a $15.23 per share net asset value of its common stock as of March 6, 2020.
The company’s valuation takes into account its recent mergers with affiliated non-traded REITs, Steadfast Income REIT Inc. (SIR) and Steadfast Apartment REIT III Inc. (STAR III), which closed on March 6, 2020.
The NAV per share is based on the estimated value of the company’s assets, less the estimated fair value of its liabilities, divided by its shares of common stock outstanding. The company’s previous valuation was $15.84 per share as of December 31, 2018, and shares were originally priced at $15.00 each.
Steadfast Apartment REIT noted that although there was a decrease in the overall estimated value per share, the total real estate value of its same-store portfolio, including current properties owned as of December 31, 2018, increased by approximately $100.3 million. The company’s portfolio was valued at nearly $3.5 billion at March 2020, compared to the pre-merger valuation of $1.8 billion as of December 2018.
The company claims that properties owned by each of SIR and STAR III increased by approximately $65.7 million over the same period.
These increases in real estate value, however, were offset by other impacts associated with the acquisition of $1.5 billion in gross real estate value and the assumption of $795 million in debt in the mergers, mergers transaction costs, reinvestment in properties in the form of capital expenditures and a change in the fair value of debt, the company said.
The company’s mortgage debt increased from $1.04 billion as of December 2018 to $2.02 billion as of March 2020, while other liabilities increased from $38 million to $83.2 million during the same period. The REIT’s available cash increased from $72.7 million in December 2018 to nearly $277.8 million in March 2020.
“The increase in real estate values is a continued validation of our investment thesis focused on moderate income apartments,” said Ella Neyland, president of Steadfast Apartment REIT. “As we deal with the current COVID-19 crisis, we believe we have invested in the type of housing working America needs that will be beneficial for our investors in the long-run.”
CBRE Capital Advisors assisted in the valuation process and provided an NAV per share range of between $14.40 and $16.12 for the REIT’s common stock as of March 6, 2020.
Steadfast Apartment REIT has invested more than $3.22 billion in 70 apartment communities, including one property held for development, in 14 states. The REIT is sponsored by Steadfast REIT Investments LLC, an affiliate of Steadfast Companies.