AR Global’s American Finance Trust Updates Net Asset Value
The board of American Finance Trust Inc., a publicly registered non-traded REIT sponsored by AR Global, approved an estimated net asset value of $23.37 per share, as of December 31, 2016. The company’s previous NAV was $24.17 per share.
The estimated NAV is based on the estimated fair value of the company’s assets less the estimated fair value of its liabilities, divided by 65.8 million shares of common stock outstanding on a fully diluted basis, as of December 31, 2016.
The company owned 455 properties with a total purchase price of $2.2 billion, comprised of 13.3 million rentable square feet, which were 100 percent leased.
American Finance Advisors, the REIT’s advisor, engaged Duff & Phelps, an independent third-party real estate advisory firm, to appraise the company’s properties and provide a valuation range of each asset.
Duff & Phelps provided a NAV range of $20.79 – $23.37 per share with a midpoint of $22.03 per share. The board chose the highest point in the range with a 5.86 percent capitalization rate and 7.49 percent discount rate.
Last month, American Finance Trust completed the merger with American Realty Capital — Retail Centers of America, an affiliated non-traded REIT. In determining the most recent NAV, the American Finance Trust board considered the estimated per share NAV increase from the merger to select the high end of the range.
American Finance Trust commenced its initial public offering in April 2013, which closed six months later after raising $1.6 billion in investor equity.
