This afternoon, Strategic Realty Trust disclosed in a SEC filing that it has determined a new net asset value (NAV) of $7.11 per share. The REIT raised capital at $10.00 per share. It issued valuation estimates during the offering period that reached $10.60 per share. This $10.60 per share claim was as recent as early 2013 when it completed its offering period. The new value represents a 33% decline in NAV in eighteen months, which was during a period of rising commercial real estate values.
This blog talked about Strategic Realty here, where it referenced an InvestmentNews article, and I talked about the REIT's valuation process here.
This is ugly and someone is going to have to answer some tough questions.