American Realty Capital Daily Net Asset Value Trust, Inc.
American Realty Capital Daily Net Asset Value Trust, Inc. (“ARC Daily NAV”) is a successor offering to American Realty Capital’s flagship product, American Realty Capital Trust, Inc. (“ARCT”). ARC Daily NAV was created to provide investors an opportunity to participate in a new offering with the same investment strategy and the same experienced management team as American Realty Capital Trust, Inc. (ARCT), our first company to successfully internalize management at no cost to shareholders, which listed its shares on NASDAQ on March 1, 2012, and merger with Realty Income (NYSE ticker:O) on January 22, 2013. Unlike ARCT, however, ARC Daily NAV will offer a daily repurchase program, although with significant limitations (up to 20% per year – see footnote)1—a feature not typically offered by other direct investments. This feature will provide investors the ability to redeem limited shares at the respective Net Asset Value (“NAV”) price per share class as calculated at the end of each business day.3
Why ARC Daily NAV?
- Focus: ARC Daily NAV intends to acquire single tenant, net leased real estate leased long-term (10 years or more) to tenants which are investment grade or creditworthy.2
- Team: ARC Daily NAV has a team of seasoned professionals with significant experience investing in this asset class through various real estate cycles.
- Daily Repurchase: ARC Daily NAV offers investors two share classes; both offering a daily repurchase program, although with significant limitations (up to 20% per year – see footnote)1—a feature not typically offered by other direct investments.
|1||The redemption price per share for the share repurchase program on any business day will be our NAV per share for the respective class of common stock as calculated after the close of business on the day the request was made. Generally, we will pay redemption proceeds, less any applicable short-term trading fees, taxes, or other required withholdings, by the third business day following the redemption request day. Stockholders who redeem their shares within four months of purchasing them will be subject to a short-term trading fee of 2% of the aggregate NAV of the shares of common stock redeemed. We will limit shares redeemed during any calendar quarter to 5% of our NAV as of the last day of the previous calendar quarter, or approximately 20% of our NAV in any 12 month period. In addition, most of our assets will consist of properties that cannot be liquidated without compromising our ability to realize full value upon their disposition, and therefore, we may not have enough funds to satisfy all repurchase requests. Our board of directors may choose to terminate, suspend or modify our share repurchase program at any time. More information can be found in the Prospectus.|
|2||“Investment grade” is a determination made by major credit rating agencies, and “credit-worthy” tenants are as determined by the Company.|
|3||The board of directors has established valuation guidelines and will oversee our advisor’s NAV calculation and will review and approve the quarterly valuations. Notwithstanding this, the asset management fee paid to our advisor will be based on NAV, which the advisor is responsible for calculating. Therefore, the advisor will be subject to conflicts of interest in making its calculation. In addition, the advisor will not verify the quarterly valuations of the independent valuer and, because such fair value calculations involve significant subjective judgments, valuations will be only estimates, and ultimate realization depends on conditions beyond our, the advisor’s, or the valuer’s control. Therefore, the appraised value may not capture the potential realizable value which would potentially cause a discrepancy between the estimated NAV and the potential realizable NAV.