American Realty Capital New York City REIT Announces Lower NAV
October 27, 2017 | James Sprow | Blue Vault
On October 25, 2017, the independent directors of American Realty Capital New York City REIT, Inc. approved an Estimated Per Share NAV equal to $20.26 based on an estimated fair value of the Company’s assets less the estimated fair value of the Company’s liabilities, divided by 31,029,865 shares of common stock outstanding on a fully diluted basis as of June 30, 2017. The Advisor believes there have been no material changes to the Company’s assets and liabilities between June 30, 2017 and the date of the filing that would impact Estimated Per-Share NAV, other than changes related to the payment of distributions to holders of common stock in excess of cash flows from operations.
The previously announced NAV was $21.25 as of June 30, 2016, with the latest NAV of $20.26 representing a decline of 4.7% over the 12-month period.
The Advisor engaged Duff & Phelps, an independent third-party real estate advisory firm, to perform appraisals of the Real Estate Assets and provide a valuation range of each Real Estate Asset. In addition, Duff & Phelps was engaged to review and incorporate in the calculation of Estimated Per-Share NAV the Company’s market value estimate regarding other assets and liabilities.
The Board reviewed the valuations prepared by Duff & Phelps and determined that the value of the Real Estate Assets for purposes of determining the Estimated Per Share NAV was $806.1 million, which was within the range of the estimated value of the Real Estate Assets of $743.9 million to $814.3 million provided in the Duff & Phelps Report. The Board determined, based on the Advisor’s recommendation, to adjust the value of the Real Estate Assets $27.9 million above the midpoint of the range. The concluded value of the Real Estate Assets reflects an overall increase of 11.4% over the sum of (a) the original purchase price for those assets of $687.5 million, plus (b) post-acquisition capital expenditures for those assets of $36.3 million.
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