Multifamily Investment Values
Industrial Investment Values
Office Investment Values
Other Investment Values
Hypothetical Change
Input
Discount Rate (weighted average) Exit Capitalization Rate (weighted average)
0.25% decrease 0.25% increase 0.25% decrease 0.25% increase
+1.9% (1.9)% +2.9% (2.7)%
+2.0% (1.9)% +2.9% (2.6)%
+1.8% (1.8)% +2.3% (2.1)%
+1.9% (1.8)% +2.3% (2.1)%
The following table reconciles stockholders’ equity per our Consolidated Balance Sheet to our NAV ($ in thousands):
Reconciliation of Stockholders’ Equity to NAV Total stockholders’ equity under GAAP Redeemable non-controlling interests Total partners’ capital of Operating Partnership
December 31, 2024
$
5,194,006 434,878 5,628,884
Adjustments: Accrued stockholder servicing fee
259,215
Advanced organization and offering costs and Advanced operating expenses (1) Unrealized net real estate and real estate debt appreciation
—
249,577 3,048,502
Accumulated depreciation and amortization
NAV 9,186,178 (1) As of December 31, 2024, we have fully reimbursed the Advisor $7.3 million for advanced organization and offering costs. $
The following details the adjustments to reconcile stockholders’ equity to our NAV:
• Accrued stockholder servicing fee represents the accrual for the full cost of the stockholder servicing fee for Class T, Class S and Class D shares. Under GAAP, we accrued the full cost of the stockholder servicing fee payable over the life of each share (assuming such share remains outstanding the length of time required to pay the maximum stockholder servicing fee) as an offering cost at the time we sold the Class T, Class S and Class D shares. Refer to Note 2 — “Summary of Significant Accounting Policies” to our consolidated financial statements in this Annual Report on Form 10-K for further details of the GAAP treatment regarding the stockholder servicing fee. For purposes of NAV, we recognize the stockholder servicing fee as a reduction of NAV on a monthly basis. • The Advisor advanced organization and offering costs for our initial public offering (other than upfront selling commissions, dealer manager fees and stockholder servicing fees) on our behalf through December 21, 2019. Such costs were reimbursed to the Advisor pro rata over 60 months following December 21, 2019. Under GAAP, organization costs are expensed as incurred and offering costs are charged to equity as such amounts are incurred. For NAV, such costs are recognized as a reduction to NAV as they are reimbursed ratably over 60 months. These amounts were fully reimbursed as of December 31, 2024. • Our investments in real estate are presented under historical cost in our consolidated financial statements. Additionally, our mortgage notes, credit facilities, secured financings on investments in real estate debt and unsecured line of credit (“Debt”) are presented at their carrying value in our consolidated financial statements. As such, any changes in the fair value of our Debt are not included in our GAAP results. For purposes of determining our NAV, our investments in real estate and our Debt are recorded at fair value. • We depreciate our investments in real estate and amortize certain other assets and liabilities in accordance with GAAP. Such depreciation and amortization is not recorded for purposes of determining our NAV.
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