The Parking REIT Inc., a publicly registered non-traded real estate investment trust formed by the December 2017 merger of MVP REIT and MVP REIT II, has delayed calculating its net asset value per share, citing impacts of the global COVID-19 pandemic.
Historically, the company values its shares on an annual basis in May, and while it did not provide a timeframe for the updated valuation, the company indicated that it “intends to do so when circumstances permit.”
“Largely due to the severe impact of the global COVID-19 pandemic and related governmental orders instituting quarantines, mandating business and school closures and restricting travel, the company has yet to receive the necessary third-party appraisals of its assets that form the basis for the NAV estimate,” the company said in a filing with the Securities and Exchange Commission. “In the absence of such appraisals and in light of the extreme uncertainty, volatility and lack of liquidity in the market, which make values difficult to discern, the board is unable to determine an NAV estimate at this time.”
In April, the company suspended distributions paid on its Series A and Series 1 Preferred Stock until further notice, citing the potential economic disruption caused by the coronavirus (COVID-19). The company suspended distributions and share repurchases for holders of its common stock in 2018.
The Parking REIT is managed by MVP Realty Advisors and invests primarily in parking lots and garages in the United States and oversees a portfolio of 38 parking facilities purchased for approximately $309.9 million. The company commenced operations in December 2015 and raised approximately $61.3 million in the initial public offering until closing in March 2017.