The estimated value was determined by the use of a combination of different indicators and an internal assessment of value utilizing internal financial information under a common means of valuation under the direct capitalization method. No independent appraisals were obtained. Specifically, the estimate of the estimated per-share value was made with primary consideration of the valuation of the Company’s real estate assets which was determined by the Company’s management using methodologies consistent with publicly traded real estate investment trusts in establishing net asset values, and the estimated values of other assets and liabilities determined by the Company’s management as of March 31, 2011.I was pretty outraged in early 2010 when Inland Western presented a value of $6.85, thinking it too high. I guess I have mellowed over the past year because I read the filing without much of a reaction. I think this is because Inland Western, if I am not mistaken, is planning on listing its shares in the near future. A listing will give a true market valuation of Inland Western, and while its net asset valuation may have some merit, the stock price will be the tangible value.
Tuesday, June 21, 2011
Inland Western REIT's New Value
Inland Western filed an 8-K yesterday with a new net asset value per share. Inland Western estimates that its net asset value was $6.95 per share at March 31, 2011. This is an increase from early 2010's $6.85 per share valuation. Here is the opaque language, which now is common place with non-traded REIT sponsors, in the 8-K describing how Inland Western determined its valuation: