The Parking REIT Increases Net Asset Value
The board of The Parking REIT Inc., a non-traded REIT formed by the December 2017 merger of MVP REIT and MVP REIT II, has approved an estimated net asset value per share of $25.10 for the company’s common stock as of May 15, 2019.
The board of The Parking REIT Inc., a non-traded REIT formed by the December 2017 merger of MVP REIT and MVP REIT II, has approved an estimated net asset value per share of $25.10 for the company’s common stock as of May 15, 2019.
Last year’s NAV per share was $24.61, as of May 29, 2018, and shares in the initial public offering were originally sold for $25.00 per share.
The NAV per share was based on the estimated value of the REIT’s assets ($364.3 million), less the estimated value of its liabilities ($147.5 million), divided by the approximate number of shares outstanding on a fully diluted basis (6.9 million), calculated as of May 15, 2019.
To assist the valuation, the company engaged Parking Property Advisors LLC, an independent third-party firm, to provide a valuation analysis for the REIT’s 42 parking properties.
As of May 15, 2019, the board determined that the fair value of the appraised properties was approximately $353.3 million, a 12 percent increase over the total purchase price of nearly $315 million.
The Parking REIT, which invests primarily in parking lots and garages in the United States, oversees a portfolio of 42 parking facilities located in 17 states with a total of more than 11,000 parking spaces. In October 2018, the company filed a preliminary prospectus with the SEC to raise up to $100 million in an initial public offering. The company intends to list its shares on the NASDAQ Global Market under the symbol “PARK.”
