Hartman Short Term Income Properties XX, Inc. Announces Estimated NAV
January 12, 2017 | James Sprow | Blue Vault
The Board of Directors of Hartman Short Term Income Properties XX, Inc. determined an estimated net asset value (“NAV”) per share of the Company’s common stock of $13.15 as of September 30, 2016.
The Company is providing the estimated net asset value per share of its common stock to assist the broker dealers that participated in the Company’s initial and follow-on public offerings in meeting their ongoing customer account statement reporting obligations under the current rules of the Financial Industry Regulatory Authority, Inc. (“FINRA”).
In determining the estimated net asset value per share, the Board’s Valuation Committee relied upon information provided in a report provided by WKW Financial Advisors (“WKW”), an independent consulting firm providing authoritative studies, financial analysis, valuation and strategic advisory services, engaged with the approval of the Valuation Committee, and the Board’s experience with, and knowledge of, the Company and its real property and other assets as of September 30, 2016.
As of September 30, 2016, the Company owned 16 commercial properties. The Board determined the fair value of the Company’s real estate investments to be $295,000,000 as of that date. This determination was based on an income capitalization approach.
The Valuation Report included an estimated valuation of the Company’s notes payable as equal to fair value as of September 30, 2016. The Board determined that the fair value of notes payable as of September 30, 2016 was $73,521,778.
The estimated value per share was based upon 18,180,251 shares of the Company’s common stock outstanding as of September 30, 2016. Although the estimated value per share has been developed as a measure of value as of a specific time, September 30, 2016, the estimated value per share does not reflect a liquidity discount for the fact that the shares are not currently traded on a national securities exchange or the limited nature in which a shareholder may redeem shares under the Company’s share redemption program (if at all), a discount for the non-assumability or prepayment obligations associated with certain of the Company’s debt, or a discount for the Company’s corporate level overhead.
The Blue Vault Summit could not have been more perfectly timed. This gathering of the Broker Dealer and Sponsor communities provided insightful and open discussion from several vantage points. These conversations are paramount, especially in a time of significant regulatory change.