Hospitality Investors Trust, Inc.
On May 23, 2019., Hospitality Investors Trust, Inc. (HIT) announced that its estimated NAV per share decreased from $13.87, as of December 31, 2017, to $9.21 per share, as of December 31, 2018. Shares of HIT, formerly known as American Realty Capital Hospitality Trust, Inc., were offered at $25.00 per share. The 34% decrease in year-over-year estimated NAV per share was attributable to a combination of factors including weakening operating results stemming from tepid top–line growth, increased expense growth, due to labor costs increases, and greater disruption to operations in 2018 due to the continued renovation of portfolio properties. HIT further noted that $3.77 of the decline in NAV per share was attributable to a decrease in portfolio real estate valuations and the remaining $0.91 due to a decrease in restricted cash related to the continuing implementation of HIT’s property improvement plans on portfolio properties.
HIT also noted that the decrease in NAV per share coincided with declining equity performance of publicly traded hospitality REITs. Select service oriented REITs listed on exchanges, including Ashford Hospitality Trust, Inc. (NYSE: AHT), Summit Hotel Properties Inc. (NYSE: INN), Apple Hospitality REIT Inc. (NYSE: APLE), RLJ Lodging Trust (NYSE: RLJ), and Chatham Lodging Trust (NYSE: CLDT), reported average equity price declines of 28% during 2018.
In a call with investors HIT management reported that it did not have a timeline on when investors could anticipate receiving distributions. Distributions to common stockholders were suspended in 2016. HIT noted that they continue to plan for a prospective liquidity event within the next two to four years.
The Parking REIT, Inc.
On May 28, 2019, The Parking REIT, Inc. announced that its board of directors had established an estimated NAV per share of $25.10 per share as of May 15, 2019. The Parking REIT retained Parking Property Advisors, an independent third-party valuation firm to assist in the valuation process including the retention of five appraisal firms to provide valuation analysis on the 42 portfolio properties. The Parking REIT noted that the estimated NAV per share does not include a liquidity discount to reflect the lack of liquidity in the shares. The Parking REIT suspended the share repurchase program in May 2018, and the shares are not listed on an exchange.
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