LAS VEGAS, April 17, 2017 /PRNewswire/ -- MVP REIT, Inc. announced today that its board of directors has approved an estimated per share net asset value ("NAV") of its common stock of $9.32 as of March 30, 2017. MVP REIT sold shares in its initial public offering at $9.00 per share.
The estimated value per share is based on the estimated value of MVP REIT's assets less the estimated value of its liabilities, divided by the number of outstanding shares of the company's common stock, all as of March 30, 2017.
"We are pleased with the performance of MVP REIT and the continued growth in the underlying value of its portfolio, up from $9.14 per share1 one year ago, and from the initial investment cost of $9.00 per share," said Mike Shustek, chairman and chief executive officer of MVP REIT.
At the recommendation of its advisor, MVP REIT engaged Parking Property Advisors, LLC, an independent third-party valuation firm, to provide a valuation analysis on 29 of the 31 properties in its portfolio. The remaining two properties were acquired within the past six months and their estimated value was based on information gathered at the time of purchase and management's internal estimate. After engaging Appraisal Institute members CBRE, Colliers International Valuation & Advisors Services, Integra Realty Resources, JLL Valuation & Advisory Services and Valbridge, Parking Property Advisors provided MVP REIT with its estimate of the fair value of MVP REIT's parking assets as of March 30, 2017. Based on this information, MVP REIT's board of directors determined the fair value of the company's investments to be $158.1 million. The board then reviewed with its advisor its other assets and liabilities, and determined the estimated value per share.
MVP REIT's advisor performed the valuation of its common stock in compliance with the Investment Program Association's practice guideline regarding valuations of publicly registered non-listed REITs ("IPA guidelines").
Consistent with the IPA guidelines, the valuation does not include a portfolio premium that may reasonably be expected to accrue in a typical real estate valuation process conducted for transaction purposes, nor does it reflect an enterprise value.
As of April 11, 2017, the NAV of $9.32 per common share will be used for purposes of effectuating permitted redemptions of MVP REIT's common stock and issuing shares pursuant to its distribution reinvestment plan.
The NAV should not be viewed as an indication of the value that a shareholder could expect to realize in a sale of shares to a third party, nor should it be viewed as the expected price that MVP REIT's shares would trade at if they were listed on an exchange.
1MVP REIT, Inc. announced in April 2016 a $9.14 estimated value per share as of March 30, 2016.
About MVP REIT, Inc.
MVP REIT is a publicly registered, non-traded hybrid real estate investment trust. MVP REIT, which completed its initial public offering in September 2015, intends to use the proceeds from its offering to invest in a diversified portfolio of income producing commercial parking assets, together with the funding of loans secured by income-producing commercial real estate, as well as to pay expenses and fees associated with the offering.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "project," "should," "will," and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: volatility in the debt or equity markets affecting our ability to acquire or sell real estate assets; national and local economic, business and real estate market conditions, including the likelihood of a prolonged economic slowdown or recession; the ability to maintain sufficient liquidity and our access to capital markets; our ability to identify, successfully compete for and complete acquisitions and loans; and the performance of real estate assets and loans after they are acquired. Although MVP believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, they can give no assurance that the expectations will be attained or that any deviation will not be material. MVP does not undertake any obligation to update any forward-looking statement contained herein to conform the statement to actual results or changes in expectations. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities.
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