Moody National REIT I Declares NAV of $10.75 Per Share, Explores Strategic Alternatives

Moody National REIT I Inc., a publicly registered non-traded real estate investment trust, announced that its board of directors determined the estimated value per share of the company’s stock was $10.75 per share as of December 31, 2015.

This estimated value per share is based upon the property appraisals conducted by Hospitality Valuation Services.

“We are pleased with the growth in the REIT I portfolio especially considering that the vast majority of equity was raised in the final 12 months of the offering and deployed within the last year. To overcome the load in such a short period of time reflects well on our acquisition strategy within the hospitality sector and our management team,” commented Brett Moody, chief executive officer of Moody National Companies.

Following the determination of the valuation, the board of directors formed a special committee of independent directors to explore potential strategic alternatives for the REIT.

Moody National REIT I commenced its $1 billion initial public offering in April 2009, with shares of common stock priced at $10.00 each. The REIT terminated the offering in October 2012 after raising nearly $11 million in investor equity from the sale of common stock and DRIP shares. The subsequent follow-on offering, which was terminated in February 2015, raised an additional $113 million. The company continues to offer DRIP shares to its investors.

Moody National REIT I owns a portfolio of nine hotels, as well as joint venture interests in two additional hotels, with a total purchase price of $225 million. The REIT also owns a joint venture interest in a mortgage note secured by a hotel property with an outstanding principal balance of $11.8 million, as well as a note receivable with a balance of $9 million.

The REIT is sponsored by Moody REIT Sponsor LLC, an affiliate of the Moody National Companies, which is a full-service commercial real estate company inclusive of mortgage, development, realty and title divisions. Founded in 1996, Moody National Companies has managed more than $2 billion in commercial real estate.

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