Griffin Capital Essential Asset REIT Approves $10.04 NAV
October 30, 2017 | James Sprow | Blue Vault
On October 27, the board of directors of Griffin Capital Essential Asset REIT, Inc., a public nontraded REIT, approved an estimated value per share of $10.04 based on the estimated value of the REIT’s assets less the estimated value of the REIT’s liabilities, divided by the approximate number of shares outstanding on a fully diluted basis, calculated as of June 30, 2017. The REIT believes there were no material changes between June 30, 2017 and the October 27, 2017, filing that would impact the estimated value per share.
The estimated value per share as of June 30, 2016 was $10.44 according to an 8-K filing on October 27, 2016.
The estimated value per share was determined after consultation with the REIT’s advisor, Griffin Capital Essential Asset Advisor, LLC, and Robert A. Stanger & Co., an independent third-party valuation firm. Stanger prepared an appraisal report, summarizing key inputs and assumptions on 82 of the 84 properties in the Company’s portfolio, as of June 30, 2017.
As of June 30, 2017, the total value of the appraised properties at the Company’s respective ownership interest, as provided by Stanger and the pending disposition price on the One Century Place and DreamWorks properties was approximately $3.36 billion. This represents an approximately 5.06% increase in the total value of the real estate assets over the aggregate basis. The total acquisition cost of the REIT’s 84 properties was approximately $3.14 billion. In addition, the Company had invested $57.9 million in capital improvements on the real estate assets since inception.
The Company’s Distribution Reinvestment Plan (“DRP”) was amended and restated effective October 24, 2016 to provide the purchase price for shares issued pursuant to the DRP shall be equal to the most recently published estimated net asset value. Accordingly, the purchase price under the DRP is no $10.04 and will be effective with the distribution payment to stockholders to be paid in the month of November, 2017.
Learn more about Griffin Capital Company, LLC on the Blue Vault Sponsor Focus page.
I have been in the financial services industry for 20 years and our firm provides an education platform that gets clients to “think differently” about their financial picture. For many years we have communicated to clients the need to diversify their portfolios using alternative asset classes and more specifically, private non-traded investments. Due diligence on these types of financial vehicles is essential and when I learned about Blue Vault in 2010, our firm immediately began using their material as a tool to build confidence in the minds of our advisors on which alternatives to recommend to clients. I am impressed with the way Blue Vault continues to add value to their subscribers and I view their publication as a tremendous resource in today’s complex world.