Lightstone Value Plus Real Estate Investment Trust III Inc
Lightstone Value Plus Real Estate Investment Trust III — Q1 2019 Earnings Presentation
26 slides from Lightstone Value Plus Real Estate Investment Trust III's earnings presentation, Jun 20, 2019
Slide 1: First Quarter 2019 Overview
FIRST QUARTER 2019 OVERVIEW LIGHTSTONE VALUE PLUS REIT III 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward - looking statements, including discussion and analysis of the financial condition of the Company and its subsidiaries and other matters. These forward - looking statements are not historical facts but are the intent, belief or current ex
Slide 3: Agenda
Agenda • Overview • Asset Review • Liquidity • Net Asset Value • Strategy • Share Repurchase Program • Distribution Policy • Questions 3
Slide 4: Overview
LIGHTSTONE Overview
Slide 5: Overview: Background
Overview 5 Background • Lightstone Value Plus Real Estate Investment Trust III, Inc. is a Maryland corporation, formed on October 5, 2012. • The Company elected to qualify to be taxed as a REIT for U.S. federal income tax purposes beginning with the taxable year ending December 31, 2015. • An affili
Slide 6: Overview: Initial Public Offering
Overview 6 Initial Public Offering • Sponsored by Lightstone. • Commenced on July 15, 2014 and terminated on March 31, 2017. • Raised aggregate gross proceeds of approximately $131.7 million, including $2.0 million purchased by an affiliate of Lightstone. • In connection with the IPO, an affiliate o
Slide 7: Overview: Portfolio Summary
Overview 7 Portfolio Summary (as of March 31, 2019) • We wholly own and consolidate nine limited service hotels containing a total of 999 rooms. • We have an unconsolidated 22.5% membership interest in a joint venture which owns and operates The Cove at Tiburon, a multi - family complex consisting o
Slide 8: Asset Review
LIGHTSTONE Asset Review
Slide 9: Hotel Portfolio Map
Hotel Portfolio Map Number of Hotels: 10 Number of Keys: 1,182 Number of States: 9 9
Slide 10: Hotel Portfolio Map
Hotel Portfolio Map LIGHTSTONE
Slide 11: Hotel Portfolio Performance
Hotel Portfolio 11 Hotel Portfolio Performance • Average occupancy, RevPAR, and ADR decline quarter - over - quarter: • Q1 2019 revenue decreased by $0.4 million to $7.2 million from $7.6 million for the same period in 2018 primarily due to decreases in average occupancy, RevPAR, and ADR. • Manageme
Slide 12: The Cove at Tiburon
The Cove at Tiburon • The Cove at Tiburon is a 281 - unit luxury waterfront multifamily property located in Tiburon, CA. • Tiburon, an affluent suburb of San Francisco, is a 30 - minute drive over the Golden Gate Bridge to the heart of San Francisco. • The Cove at Tiburon is an entirely free market
Slide 13: The Cove at Tiburon: Operations Update and Refinancing
The Cove at Tiburon Operations Update • Occupancy was 92% as of March 31, 2019 compared to 89% as of March 31, 2018. • Annualized revenue per unit increased slightly for the first quarter 2019 compared to the same period in 2018. Refinancing • Refinanced the acquisition loan with a new $180 million
Slide 14: Liquidity
LIGHTSTONE Liquidity
Slide 15: Liquidity: Revolving Credit Facility
Liquidity Revolving Credit Facility • We currently have a nonrecourse revolving credit facility that provides for a line of credit of up to $60.0 million. • We may designate properties as collateral that allow us to borrow up to a 65.0% loan - to - value ratio of the properties subject to us also me
Slide 16: Net Asset Value
LIGHTSTONE Net Asset Value
Slide 17: Net Asset Value
Net Asset Value 17 • On March 19, 2019, the Board of Directors established and approved our NAV per Share of $10.00 as of December 31, 2018. • NAV is after the purchase of $12.1 million of Subordinated P rofit Interests by an affiliate of Lightstone. • Marshall & Stevens Incorporated, an independent
Slide 18: Strategy
LIGHTSTONE Strategy
Slide 19: Strategy
Strategy 19 • We are evaluating all of the Company’s investments to determine optimal holding periods. • Our primary focus will include preservation of value and production of MFFO. • We are exploring new opportunities to deploy capital into higher - yielding investments. • Liquidity and tax conside
Slide 20: Share Repurchase Program
LIGHTSTONE Share Repurchase Program
Slide 21: Share Repurchase Program
Share Repurchase P rogram • We have a Share Repurchase Program which may provide our stockholders with limited, interim liquidity by enabling them to sell their shares of common stock back to us, subject to certain restrictions . • The repurchase price is: – For repurchases due to the death of a sto
Slide 22: Share Repurchase Program
Share Repurchase P rogram • Our Board of Directors may amend the terms, suspend, or terminate the Share Repurchase Program by providing advance written notice to our stockholders. • The Board of Directors has decided to maintain the Share R epurchase P rogram but expects limited cash to be available
Slide 23: Distribution Policy
LIGHTSTONE Distribution Policy
Slide 24: Distribution Policy
Distribution Policy 24 • Distributions are authorized at the discretion of our Board of Directors . • On January 14, 2015, our Board of Directors authorized and we declared our first distribution in an amount equal to a 6.0% annualized rate for the period from December 11, 2014 (the date of breaking
Slide 25: Distribution Policy: Suspension of Distributions
Distribution Policy 25 • Upon the recommendation of management, on June 19, 2019, our Board of Directors determined to suspend regular monthly distributions. • Factors that impacted the Board of Directors’ decision included: – Liquidity of the Company; – Projected capital expenditures requirements o
Slide 26: Questions
INVESTOR SERVICES: 888 - 808 - 7348 Questions 26
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