Steadfast Apartment REIT Inc., a publicly registered non-traded real estate investment trust, declared an estimated value of $14.85 per share of the company’s common stock, as of December 31, 2016. The updated valuation is a 2.7 percent increase from last year’s $14.46 NAV per share.
The estimated value per share was determined by REIT’s board of directors based on independent, third-party firms that conducted property-level and aggregate valuation analyses on its 34 apartment community properties plus cash and other assets, less the estimated value of outstanding mortgage debt and other liabilities, divided by the number of shares issued and outstanding on an adjusted fully diluted basis.
“For a second year, our estimated value per share reflects a notable increase after achieving what we believe was one of the non-traded REIT industry’s best valuations relative to initial share price in the shortest time since escrow break,” said Ella Neyland, president of Steadfast Apartment REIT. “We believe that this continues to validate that our hands-on approach to property management, including making small aesthetic improvements to individual properties, can have an ongoing impact on the portfolio’s overall value.”
The board engaged CBRE Capital Advisors, a broker-dealer firm that specializes in real estate financial services, to provide a calculation of the range for the estimated value per share. CBRE Cap based the range on property appraisals performed by CBRE Inc., an affiliate of CBRE Cap and an independent third-party appraisal firm.
The valuation was performed in accordance with guidelines issued by the Investment Program Association.
Steadfast Apartment REIT, which invests in apartment communities in targeted markets throughout the United States, has invested more than $1.5 billion in 34 apartment communities in 11 states. The company closed its public offering in March 2016 after raising $712 million in investor equity.