UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_______________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 3, 2015
American Realty Capital Daily Net Asset Value Trust, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Maryland
(State or Other Jurisdiction of Incorporation)
333-169821 | 27-3441614 | |||
(Commission File Number) | (IRS Employer Identification No.) | |||
405 Park Avenue, 14th Floor | ||||
New York, NY 10022 | ||||
(Address, including zip code, of Principal Executive Offices) | ||||
(212) 415-6500 | ||||
(Registrant's Telephone Number, Including Area Code) | ||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 8.01. Other Events.
On August 3, 2015, American Realty Capital Daily Net Asset Value Trust, Inc.'s (the “Company”) net asset value (“NAV”) per institutional share is $9.919 and its NAV per retail share is $10.188.
The following sets forth the calculation of NAV for each of the institutional shares and retail shares:
Net Asset Value as of July 1, 2015: | $ | 25,264,793.27 | ||||
Net Assets as of August 3, 2015: | ||||||
Real Estate Properties, at Fair Value | $ | 36,850,000.00 | ||||
Non-Real Estate Assets (1) | ||||||
Cash and Cash Equivalents | 3,189,297.07 | |||||
Receivable from Advisor | 955,277.00 | |||||
Prepaid and Other Costs | 791,030.34 | |||||
Total Assets | 41,785,604.41 | |||||
Liabilities | ||||||
Financing | 16,250,763.40 | |||||
Deferred Revenue | 121,134.35 | |||||
Redemptions Payable | 3,472.08 | |||||
Other Liabilities (1) | 142,389.12 | |||||
Total Liabilities | 16,517,758.95 | |||||
Net Asset Value | $ | 25,267,845.46 | ||||
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(1) As described in “Valuation Policies” in the Company's Prospectus, it estimates operating income and certain expenses and adds, or deducts, the daily accrual of such estimated expenses in determining NAV. Any operating income or such expense items that exceed the amount of such estimates will be adjusted monthly on a going forward basis.
The NAV per share for a particular day can be found on the Company's website at www.arcdailynav.com or by calling its toll-free, automated telephone line at 1-866-532-4743.
Below is the NAV per share for each of the institutional shares and the retail shares for each day subsequent to July 1, 2015.
Date | NAV per institutional share | NAV per retail share | ||
July 2, 2015 | $9.944 | $10.212 | ||
July 6, 2015 | $9.944 | $10.212 | ||
July 7, 2015 | $9.944 | $10.212 | ||
July 8, 2015 | $9.944 | $10.212 | ||
July 9, 2015 | $9.944 | $10.212 | ||
July 10, 2015 | $9.944 | $10.212 | ||
July 13, 2015 | $9.944 | $10.212 | ||
July 14, 2015 | $9.944 | $10.212 | ||
July 15, 2015 | $9.944 | $10.212 | ||
July 16, 2015 | $9.944 | $10.212 | ||
July 17, 2015 | $9.944 | $10.212 | ||
July 20, 2015 | $9.944 | $10.212 | ||
July 21, 2015 | $9.944 | $10.212 | ||
July 22, 2015 | $9.941 | $10.210 | ||
July 23, 2015 | $9.939 | $10.208 | ||
July 24, 2015 | $9.937 | $10.206 | ||
July 27, 2015 | $9.931 | $10.199 | ||
July 28, 2015 | $9.928 | $10.197 | ||
July 29, 2015 | $9.926 | $10.195 | ||
July 30, 2015 | $9.924 | $10.193 | ||
July 31, 2015 | $9.922 | $10.191 | ||
August 3, 2015 | $9.919 | $10.188 | ||
As of August 3, 2015, the valuation of $36.9 million compares to a GAAP basis of real estate properties (before accumulated depreciation and amortization) of $34.8 million, representing an increase of approximately $2.1 million or 6%. The following are key assumptions (shown on a weighted-average basis) that are used in the direct capitalization models to estimate the value of the Company's real estate investments by property type:
Property | Type | Overall Cap Rate | Direct Cap Value | |||||
Carlisle, IA | Retail | 7.25% | $ | 1,230,000 | ||||
Phoenix, AZ | Retail | 7.00% | $ | 2,160,000 | ||||
Gloster, MS | Retail | 8.50% | $ | 810,000 | ||||
Alorton, IL | Retail | 8.25% | $ | 1,000,000 | ||||
Kansas, OK | Retail | 8.50% | $ | 1,060,000 | ||||
Woodville, MS | Retail | 8.50% | $ | 820,000 | ||||
Chili, NY | Industrial | 7.00% | $ | 21,150,000 | ||||
Temple, TX | Retail | 7.50% | $ | 1,100,000 | ||||
Converse, TX | Retail | 7.50% | $ | 1,100,000 | ||||
Slidell, LA | Retail | 7.00% | $ | 980,000 | ||||
New Castle, IN | Retail | 7.25% | $ | 720,000 | ||||
Sturgeon Bay, WI | Office | 8.50% | $ | 650,000 | ||||
Evanston, WY | Industrial | 7.00% | $ | 2,170,000 | ||||
Clayton, NC | Retail | 7.25% | $ | 1,900,000 | ||||
Weighted Average Basis | 7.23% | |||||||
A change in the rates used would impact the calculation of the value of the Company's properties. For example, assuming all other factors remain constant, an increase in the weighted average annual overall capitalization rate of 0.25% would reduce the value of the Company's real properties as of August 3, 2015 by approximately 3.36%.
This is only a mathematical illustration and is not intended to qualify the values reflected above.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
AMERICAN REALTY CAPITAL DAILY NET ASSET VALUE TRUST, INC.
Date: August 3, 2015 | By: | /s/ William M. Kahane | |
William M. Kahane | |||
Chief Executive Officer | |||