SNL’s NAV Monitor Shows Listed REIT Sectors Trading at Premiums to NAVs

March 7, 2017


SNL’s NAV Monitor Shows Listed REIT Sectors Trading at Premiums to NAVs

March 6, 2017 | by James Sprow | Blue Vault 

Investment on Pocket Watch Face. Time Concept.

In its monthly NAV Monitor report, SNL Financial (an offering of S&P Global Market Intelligence) reported on March 6, that four traded REIT sectors were priced at significant median premiums to NAVs:  Healthcare (+13.4%), Specialty (+10.2%), Self-storage (10.0%) and Data center (+9.5%). The sector with the greatest discount of share pricing to NAVs was Retail (-10.1%). 

The NAV analysis includes publicly traded U.S. equity REITs with market caps greater than $200 million. The median for those publicly traded equity REITs was a discount of 1.7% to net asset values.

The high premiums for the healthcare and data center sectors may help explain the rumors that Carter Validus Mission Critical REIT, a nontraded REIT with both healthcare and data center properties, may be considering a sale of its portfolio.

The REIT’s most recently reported net asset value per share was $10.02 with 183.7 million weighted average shares outstanding as of September 30, 2016. If a sale materializes that provides full liquidity as rumored, the common shareholders may have a significant capital gain.

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Gregory De Jong, CFP, Co-Founder of Paragon Advisors, LLC.
July 7, 2015

Blue Vault is just what advisors need to size up the different offerings in the nontraded REIT market. Just as importantly, it’s what the industry needs to encourage best practices among REITs.