The board of Steadfast Income REIT Inc., a publicly registered non-traded real estate investment trust, has approved a $9.40 estimated net asset value per share of the company’s common stock as of December 31, 2018.
The company’s previous NAV per share was $10.84, as of December 31, 2017, and shares were originally sold for $10.00 each. In May 2018, the company paid stockholders a special distribution of $1.00 per share.
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 0.8 million from 75.5 million shares at year-end 2017 to 74.7 million shares at year-end 2018.
The estimated real estate values decreased by $268.4 million to nearly $1.3 billion at year-end 2018. The company noted that in January 2018, it sold a 90 percent interest in eight assets to Blackstone Real Estate Income Trust Inc. and contributed the remaining 10 percent to a joint venture with Blackstone REIT in exchange for a 10 percent interest.
Total assets decreased to approximately $1.42 billion from $1.74 billion at year-end 2017, and total liabilities decreased to nearly $716.5 million at year-end 2018 from $920.3 million at year-end 2017.
The REIT said that its cumulative distribution history, including the $1.00 per share special distribution, ranges from $4.54 per share for late investors and $6.90 per share for early investors.
Steadfast Income REIT focuses primarily on the multifamily sector, including stable and value-added properties and has invested $1.02 billion in 35 apartment communities in 10 states. The company launched its initial public offering in July 2010 and concluded its offering in December 2013 after raising $745 million in investor equity.