Independent Valuations. The initial NAV and Per Share NAV shall be determined by the Independent Valuation Firm as of the earlier of (i) the commencement by the Company of a follow-on public offering, if any, or (ii) the earlier of (a) the end of the calendar quarter in which the Company’s initial offering closes, or (b) the end of the calendar quarter that is two years after the Company’s escrow break for its initial public offering; provided, that, the initial determination of NAV and Per Share NAV by the Independent Valuation Firm shall be provided in accordance with such other timing as the SEC may require or which may be necessary for Ameriprise to comply with FINRA requirements. The disclosure date of the NAV and Per Share NAV shall be no more than forty-five (45) days after the NAV and Per Share NAV is determined. Thereafter, the Company shall have an Independent Valuation Firm determine the NAV and Per Share NAV no less frequently than every other year (i.e. the Independent Valuation Firm shall conduct an independent valuation at least every two (2) years). As part of each valuation performed for real property and commercial real estate debt instruments, the Independent Valuation Firm shall obtain a new appraisal, utilizing recognized industry standards prescribed by the Uniform Standards of Professional Appraisal Practice (“USPAP”) or the similar industry standard for the country where the property appraisal is conducted, of each of the real estate properties and assign a discrete value for each such property pursuant to the methodology set forth in Exhibit E. All appraisals shall be conducted by appraisers possessing a Member Appraisal Institute (“MAI”) or similar designation or, for international appraisals, a public certified expert for real estate valuations, qualified to perform and oversee the appraisal work of the scope and nature described on Exhibit E. All appraisals shall be conducted on the basis of the discounted cash flow approach, the income capitalization approach, the sales comparison approach, the cost approach, using whichever approaches and timing assumptions as are deemed the most appropriate by the Independent Valuation Firm based on the highest and best use of the properties being appraised, which method(s) shall be disclosed in the Company’s SEC Disclosure Documents.
Independent Valuations. The Independent Valuation Firm has determined the reasonable range of Per Share NAV by the Effective Date. The Company shall have the Independent Valuation Firm determine the reasonable range of Per Share NAV no less frequently than every other year (i.e., the Independent Valuation Firm shall conduct a valuation at least every two (2) years). As part of each valuation performed, the Independent Valuation Firm will perform or obtain current appraisals, utilizing recognized industry standards prescribed by the Uniform Standards of Professional Appraisal Practice (“USPAP”) or the similar industry standard for the country where the property appraisal is conducted, of each of the real estate properties and assign a discrete value for each such property pursuant to the methodology set forth in Exhibit D. All appraisals shall be conducted by appraisers possessing a Member Appraisal Institute (“MAI”) or similar designation or, for international appraisals, a public certified expert for real estate valuations, qualified to perform and oversee the appraisal work of the scope and nature described in Exhibit D. All appraisals shall be conducted on the basis of the income capitalization approach (including the discounted cash flow approach), the sales comparison approach or the cost approach, using whichever approaches and timing assumptions as are deemed the most appropriate by the Independent Valuation Firm based on the highest and best use of the properties being appraised, with consideration given to the income capitalization approach as the primary indicator of value, which method(s) shall be disclosed in the Company’s SEC Disclosure Documents.
Independent Valuations. The valuation shall be determined by the Independent Valuation Firm or shall be determined by the Company; provided that if it is determined by the Company, the Company shall include the participation of the Independent Valuation Firm as described in the Prospectus. The valuation shall be determined on a monthly basis as described in the Prospectus and shall be disclosed in a supplement to the Prospectus generally within fifteen (15) calendar days following the last calendar day of each month. The Company shall obtain an appraisal of each wholly owned property at least once every twelve (12) calendar months. Newly acquired wholly owned properties are initially valued at cost, which is expected to represent fair value at that time. Generally, acquisition costs and expenses are initially capitalized and reflected as a component of cost. Appraisals are performed in accordance with the Code of Ethics and the Uniform Standards of Professional Appraisal Practices, the real estate appraisal industry standards created by The Appraisal Foundation, or the similar industry standard for the country where the property appraisal is conducted. Each appraisal must be reviewed, approved and signed by an individual with the professional designation of MAI (Member of the Appraisal Institute) or similar designation or, for international appraisals, a public or other certified expert for real estate valuations. The primary methodology used to value properties is the income approach, whereby value is derived by determining the present value of an asset’s stream of future cash flows (for example, discounted cash flow analysis). Consistent with industry practices, the income approach incorporates subjective judgments regarding comparable rental and operating expense data, the capitalization or discount rate, and projections of future rent and expenses based on appropriate evidence. Other methodologies that may also be used to value properties include sales comparison and cost approaches.
