ITEM 8.01 OTHER EVENTS.
November 1, 2024 Transaction Price
The transaction price for each share class of our common stock for subscriptions accepted as of November 1, 2024 (and repurchases as of October 31, 2024) is as follows:
|
Transaction Price (per share)
|
Class D
|
$
|
26.0929
|
Class I
|
$
|
26.1933
|
Class S
|
$
|
26.1442
|
Class T
|
$
|
26.1442
|
September 30, 2024 NAV per Share
Our board of directors, including a majority of our independent directors, has adopted valuation guidelines, as amended from time to time, that contain a comprehensive set of methodologies to be used by our Advisor and our independent valuation advisor in connection with estimating the values of our assets and liabilities for purposes of our NAV calculation. Our NAVper share, which is updated as of the last calendar day of each month, is made available on our toll-free, automated telephone line at (833) 591-3088. Please refer to "Net Asset Value Calculation and Valuation Guidelines" in the Form 10 for how our NAV is determined. The Advisor is ultimately responsible for determining our NAV. All our property investments are appraised annually by third-party appraisal firms in accordance with our valuation guidelines and such appraisals are reviewed by our independent valuation advisor. We have included a breakdown of the components of total NAV and NAV per share for September 30, 2024.
Our total NAV presented in the following tables includes the NAV of all of our outstanding common stock as well as partnership units in the Operating Partnership held by parties other than us. The following table provides a breakdown of the major components of our total NAV as of September 30, 2024 ($ and shares in thousands, except per share/unit data):
|
Components of NAV
|
Investments in real properties
|
$
|
64,400
|
Cash and cash equivalents
|
4,294
|
Restricted cash
|
1,958
|
Other assets
|
1,168
|
Mortgage notes, term loans, and revolving credit facilities, net
|
(31,630)
|
Other liabilities
|
(1,801)
|
Management fee payable
|
(73)
|
Non-controlling interests in joint ventures
|
-
|
Net asset value
|
$
|
38,316
|
Number of outstanding shares/units
|
1,463
|
NAV per share/unit
|
$
|
26.1964
|
The following table provides a breakdown of our total NAV and NAV per share/unit by class as of September 30, 2024 ($ and shares in thousands, expect per share/unit data):
|
Class D Shares
|
Class S Shares
|
Class T Shares
|
Class I Shares
|
Third Party Operating Partnership Units1
|
Total
|
As of September 30, 2024
|
Net Asset Value
|
$
|
1
|
$
|
1
|
$
|
1
|
$
|
36
|
$
|
38,277
|
$
|
38,316
|
Number of outstanding shares/units
|
-
|
-
|
-
|
1
|
1,462
|
1,463
|
NAV per share/unit
|
$
|
26.0929
|
$
|
26.1442
|
$
|
26.1442
|
$
|
26.1933
|
$
|
26.1964
|
$
|
26.1964
|
_____________
(1) Includes the partnership interest of the Operating Partnership held by the Special Limited Partner, if any.
Set forth below are the weighted averages of the key assumptions in the discounted cash flow methodology used in the September 30, 2024 valuations:
|
Discount Rate
|
|
Exit Capitalization Rate
|
Hotel properties
|
10.87
|
%
|
8.62
|
%
|
|
A change in these assumptions would impact the calculation of the value of our hotel properties. For example, assuming all other factors remain unchanged, the changes listed below would result in the following effects on our property values:
|
Sensitivities
|
Change
|
Asset Values
|
Discount rate
|
0.25% decrease
|
$
|
65,400
|
|
0.25% increase
|
$
|
63,400
|
Exit capitalization rate
|
0.25% decrease
|
$
|
65,300
|
0.25% increase
|
$
|
63,600
|
August 31, 2024 NAV per Share
Our total NAV presented in the following tables includes the NAV of all of our outstanding common stock as well as partnership units in the Operating Partnership held by parties other than us. The following table provides a breakdown of the major components of our total NAV as of August 31, 2024 ($ and shares in thousands, except per share/unit data):
|
Components of NAV
|
Investments in real properties
|
$
|
64,300
|
Cash and cash equivalents
|
4,168
|
Restricted cash
|
2,238
|
Other assets
|
1,003
|
Mortgage notes, term loans, and revolving credit facilities, net
|
(31,462)
|
Other liabilities
|
(2,121)
|
Management fee payable
|
(82)
|
Non-controlling interests in joint ventures
|
-
|
Net asset value
|
$
|
38,044
|
Number of outstanding shares/units
|
1,457
|
NAV per share/unit
|
$
|
26.1140
|
The following table provides a breakdown of our total NAV and NAV per share/unit by class as of August 31, 2024 ($ and shares in thousands, expect per share/unit data):
|
Class D Shares
|
Class S Shares
|
Class T Shares
|
Class I Shares
|
Third Party Operating Partnership Units1
|
Total
|
As of August 31, 2024
|
Net Asset Value
|
$
|
1
|
$
|
1
|
$
|
1
|
$
|
36
|
$
|
38,005
|
$
|
38,044
|
Number of outstanding shares/units
|
-
|
-
|
-
|
1
|
1,456
|
1,457
|
NAV per share/unit
|
$
|
26.0067
|
$
|
26.0451
|
$
|
26.0451
|
$
|
26.1112
|
$
|
26.1140
|
$
|
26.1140
|
_____________
(1) Includes the partnership interest of the Operating Partnership held by the Special Limited Partner, if any.