The board of Steadfast Apartment REIT Inc., a publicly registered non-traded real estate investment trust, has approved a $15.84 estimated net asset value per share of the company’s common stock as of December 31, 2018.
The latest valuation represents a 4.35 percent increase from the previous NAV per share of $15.18, as of December 31, 2017. Shares were originally sold for $15.00 each.
The NAV per share is based on the estimated value of the company’s assets minus the estimated value of its liabilities divided by the approximate number of shares outstanding on a fully diluted basis, calculated as of December 31, 2018. The valuations were performed in accordance with guidelines issued by the Institute of Portfolio Alternatives (formerly the Investment Program Association).
The board engaged registered broker-dealer CBRE Capital Advisors Inc. to calculate a range for the estimated value per share based on appraisals performed by affiliated independent third-party appraisal firm CBRE Inc.
According to the REIT’s valuation and portfolio update, during 2018, shares outstanding increased by 0.9 million from 50.8 million shares at year-end 2017 to 51.7 million shares at year-end 2018.
The estimated real estate values increased by $50 million to nearly $1.83 billion at year-end 2018, and no acquisitions or dispositions were made during the year. Total assets increased to approximately $1.91 billion from $1.82 billion at year-end 2017.
Mortgage debt increased by roughly $31.4 million to $1.04 billion at year-end 2018. Total liabilities increased to nearly $1.09 billion from $1.05 billion in 2017.
The REIT said that its cumulative distribution history ranges from $2.55 per share for late investors and $4.28 per share for early investors. The current distribution rate is 6 percent on shares purchased at $15.00 each.
Steadfast Apartment REIT, which invests in multifamily properties in targeted markets throughout the United States, has invested $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.