The board of publicly registered real estate investment trust MVP REIT Inc. has approved an increase in its monthly distribution rate on its common shares.
The annualized distribution rate is increasing to 6.2%, or $0.558 per share, assuming a purchase price of $9 per share. The previous annualized distribution rate was 6%.
The commercial REIT anticipates making future distributions monthly in arrears, with a record date of the 24th of each month paid on the 10th day of the following month or the next business day if the 10th is not a business day. It may at any time change the distribution rate or suspend payment of distributions if it determines that it is in the best interest of the company and its shareholders.
The company also decreased the purchase price on its distribution reinvestment plan to $8.73 from $9 to take into account that no commission is paid for shares purchased under the DRIP starting with the January distribution that MVP plans to pay in February.
Mike Shustek—MVP’s CEO and principal executive officer of its advisor—recently completed his acquisition of the remaining 80% of the outstanding membership interests of Ashton Garnett Securities LLC, which is now doing business as MVP American Securities. (MVP American Securities is a registered broker-dealer engaged by the REIT as a seller agent for the offering of its shares.)
MVP REIT, which intends to operate as a nontraded real estate investment trust, is currently conducting a public offering of up to 55,555,556 shares of its common stock at $9 per share and up to an additional 5,727,377 shares of its common stock for issuance under its distribution reinvestment plan at $8.73 per share.
The company plans to use the proceeds from the offering to invest in a diversified portfolio of income producing commercial real estate properties and loans secured by income-producing CRE properties. It also plans to use the proceeds to pay expenses and fees associated with the offering. MVP REIT intends to primarily focus its activities on assets located in the Western and Southwestern United States.
Other commercial REITs that have been in the market with stock offerings recently include
