AR Capital’s American Finance Trust NAV Remains $24.17 Per Share
American Finance Trust Inc. (formerly known as American Realty Capital Trust V), a publicly registered non-traded real estate investment trust sponsored by AR Capital, announced that the company’s independent directors unanimously approved an estimated per share NAV of $24.17. The valuation remains unchanged from the previous NAV declared in May 2015.
American Finance engaged Duff & Phelps LLC, an independent third-party real estate advisory firm, to perform appraisals of the company’s real estate assets using an income capitalization approach.
A low, midpoint and high range of capitalization rates and discount rates determined by Duff & Phelps resulted in an estimated per-share NAV range of $21.45, $22.77, and $24.18, respectively. The midpoint of the range is $22.77.
In other American Finance Trust news, last week, MacKenzie Realty Capital Inc., a non-traded business development company, made a tender offer to purchase up to 150,000 shares of the REIT’s common stock for $16.00 per share. Shareholders originally purchased the stock for $25 per share.
American Finance Trust’s portfolio consists of 463 office, retail and distribution properties totaling 13.1 million square feet with an aggregate purchase price of $2.2 billion. The properties are 100 percent leased to 43 tenants.
The board terminated the offering following a series of scandals surrounding AR Capital, its sponsor, and Realty Capital Securities, its dealer manager, which led to the termination of all AR Capital-sponsored investment programs and an agreement by RCS to terminate its business.
