Watermark Lodging Trust, a publicly registered non-traded real estate investment trust created by the April 2020 merger of Carey Watermark Investors 1 and Carey Watermark Investors 2, has declared a net asset value per share for its Class A and Class T shares of common stock, as of December 31, 2021.
Class A shares were valued at $6.29 per share, while Class T shares were valued at $6.22, as of December 31, 2021. The previous NAVs per share were $5.51 per Class A share and $5.45 per Class T share, as of September 30, 2020. Shares were originally priced at $10.00 each.
In a filing with the Securities and Exchange Commission, the REIT indicated that “the primary factor contributing to the increase in the NAVs per share is the appreciation in hotel appraised values, which was partially offset by operating losses since the prior NAV valuation date.”
The NAV per share is based on the estimated value of the company’s assets, less the estimated value of its liabilities, divided by the number of shares outstanding, all as of December 31, 2021. CBRE Hotels and Robert A. Stanger & Co., both third-party firms, assisted with the valuation process.
The market value of the REIT’s real estate portfolio as of December 31, 2021 was approximately $3.56 billion, reflecting an overall increase of approximately 1.5 percent from the original purchase price paid by either Carey Watermark Investors or Carey Watermark Investors 2, plus post-acquisition capital investments. Other assets totaled $258.5 million, and the fair market value of the REIT’s mortgage debt was approximately $1.96 billion. Watermark Lodging Trust had 186.9 million Class A shares and 61.1 million Class T shares outstanding.
Watermark Lodging Trust, which oversees a portfolio of 25 hotels, reported an estimated NAV of approximately $1.56 billion, as of December 31, 2021.