Corporate Property Associates 18 – Global Inc., a publicly registered non-traded real estate investment trust managed by W. P. Carey Inc. (NYSE: WPC), has updated the net asset value per share of the company’s common stock.
Class A and Class C common stock each have an $8.57 NAV per share as of March 31, 2018, an increase of 2.5 percent compared to the previous NAV per share of $8.36 per share as of September 30, 2017. The company noted that the increase is primarily due to the appreciation of its real estate portfolio. Shares were originally priced at $10.00 each.
The NAV of $8.57 for both Class A common stock and Class C common stock will be used for stock redemptions, issuing shares through the distribution reinvestment plan, and the payment of the distribution and shareholder servicing fee for the Class C common stock.
Once every quarter, the company obtains an independent rolling appraisal of the fair market value of approximately 25 percent of its real estate portfolio based on asset value. The portfolio of assets to be appraised each quarter will be representative of the composition, by both geography and property type, of the entire portfolio. If there is a change within +/-1 percent of the most recently published NAVs, the company does not change the NAVs.
The per share NAV is based on the estimated value of the REIT’s assets less the estimated value of the company’s liabilities, divided by the approximate number of shares outstanding. Robert A. Stanger & Co. assisted with the valuation.
CPA:18 – Global’s offering was declared effective in May 2013 and closed in April 2015 after raising $1.2 billion in investor equity. As of the first quarter of 2018, the company’s portfolio consisted of 139 properties with an investment cost of $2.5 billion, according to Summit Investment Research.