The Parking REIT Unable to Determine Estimated NAV Per Share
January 6, 2020 | James Sprow | Blue Vault
In an 8-K filing on December 30, 2020, The Parking REIT’s Board of Directors disclosed that they were unable to determine an estimate of the Company’s net asset value (“NAV”) per share.
“Due largely to the severe and continuing impact of the global COVID-19 pandemic and related governmental orders and in light of the extreme uncertainty, volatility and lack of liquidity in the market, which make values difficult to discern, the Board is still unable to determine an NAV estimate at this time. The Company cannot provide any assurance as to when the Board will be able to determine an estimated NAV in the future but intends to do so when circumstances permit.”
As a result of the COVID-19 pandemic, the Company has entered into temporary lease amendments with some of its tenants. The income generated under these lease amendments do not constitute qualifying REIT income for purposes of the REIT gross income tests, and, as a result, the Company was not in compliance with the annual REIT income tests for the quarters ended June 30, 2020 and September 30, 2020.
The most recent estimated NAV per share was $25.10 as of May 28, 2019.
As of September 30, 2020, the Company held 38 properties in various cities, all of which are parking facilities with a combined total of 10,926 spaces. The REIT’s loss from operations for the nine months ended September 30, 2020, was $14.7 million. Net cash used in operating activities was $5.3 million.
In April, the company suspended distributions paid on its Series A and Series 1 Preferred Stock until further notice, citing the potential economic disruption caused by the coronavirus (COVID-19). The company suspended distributions and share repurchases for holders of its common stock in 2018.
The Parking REIT, Inc. was formed through a merger of MVP REIT, Inc. and MVP REIT II, Inc. that was consummated on December 15, 2017.
Source: SEC
