CMG Partners LLC and its affiliates have launched an unsolicited tender offer for 115,000 shares of Steadfast Apartment REIT Inc., a publicly registered non-traded real estate investment trust. The offer price is $9.12 per share, and the REIT is remaining neutral on whether or not investors should sell their shares to CMG. The offer expires on July 2, 2019, unless extended.
Steadfast Apartment REIT’s most recent net asset value per share is $15.84 as of December 31, 2018 and is $6.72 higher than CMG’s offer price. Shares were originally priced at $15.00 each.
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 REIT currently offers stockholders liquidity through its share repurchase program at 93 percent of the most recent estimated NAV per share. The annual limit on the number of shares repurchased under the plan during any calendar year is 5 percent of the average number of shares outstanding during the prior calendar year, and a $2 million limit on shares that may be repurchased during any quarter.
This is the second unsolicited tender offer this year for Steadfast Apartment REIT shares following the March 2019 offer made by Comrit Investments I. Comrit offered $11.86 per share and the REIT also remained neutral in their recommendation to investors.
Steadfast Apartment REIT, which invests in multifamily properties 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 $793.7 million in investor equity, as of March 31, 2019.