Griffin Capital Essential Asset REIT Declares $10.40 Share Value

The board of directors of Griffin Capital Essential Asset REIT Inc., a publicly registered non-traded real estate investment trust, declared an estimated per share value of $10.40 for the company’s common stock.

The previous valuation, provided on Dec. 31, 2012, was estimated at $9.56 per share, the low end in a range of three estimates. At that time, the board utilized the lowest number to determine the primary offering price of $10.28 per share (NAV plus 7 percent for third-party sales commissions).

The current valuation of $10.40 is based on the estimated value of the REIT’s assets minus the estimated value of its liabilities, or net asset value, divided by the number of shares outstanding on a fully diluted basis, calculated as of September 30, 2015. The estimated value per share was determined after consultation with the REIT’s advisor and Robert A. Stanger & Co Inc., an independent third-party investment banking firm that specializes in the non-traded investment space.

As of September 30, 2015, Griffin Capital Essential Asset REIT owned 71 real estate assets with an aggregate acquisition cost of approximately $3.02 billion, excluding fees and expenses.

Stanger valued the assets at approximately $3.35 billion, a roughly 10 percent increase in the total value over the aggregate basis. The REIT’s liabilities, including total debt and accounts payable, was approximately $1.4 billion and it had 179.7 million total shares outstanding.