8-K: Lightstone REIT V Reports 4.3% NAV Growth to $16.56

Lightstone Value Plus REIT V, Inc. announced its estimated Net Asset Value per share increased by 4.3% to $16.56 as of September 30, 2025, reflecting growth in its multifamily property portfolio.

Summary

• The Board of Directors of Lightstone Value Plus REIT V, Inc. approved an estimated Net Asset Value (NAV) of approximately $306.4 million and a resulting NAV per Share of $16.56 as of September 30, 2025.
• This represents an increase of $0.69 per share, or 4.3%, from the estimated NAV per Share of $15.87 as of September 30, 2024.
• The valuation was conducted with the assistance of the company's Advisor, LSG Development Advisor LLC, and Capright Property Advisors, LLC, an independent third-party valuation firm.
• Capright provided an opinion that the valuation methodologies and assumptions used for the investment properties and other assets/liabilities were appropriate and reasonable.
• The valuation utilized multiple methodologies for investment properties, including discounted cash flow, direct capitalization, and sales comparable analysis, with key assumptions like a 6.27% exit capitalization rate, 7.31% discount rate, and 3.00% annual market rent growth for multifamily properties.
• The company had approximately 18.5 million common shares outstanding as of September 30, 2025.
• A special distribution of $0.08 per share, totaling $1.5 million, was declared on September 29, 2025, with a record date of September 30, 2025, and paid on or about October 16, 2025.
• Total historical special distributions aggregated $4.11 per share.

Sentiment

Score: 7

Explanation: The positive increase in NAV per share and continued special distributions are favorable. However, the extensive list of limitations and risks associated with the valuation methodology, particularly for a non-listed REIT, introduces a degree of caution, preventing a higher score.

Positives

• Estimated NAV per Share increased by $0.69, or 4.3%, from $15.87 as of September 30, 2024, to $16.56 as of September 30, 2025, indicating growth in underlying asset values.
• The valuation process involved an independent third-party valuation firm, Capright Property Advisors, LLC, enhancing credibility.
• The Board of Directors, including independent directors, unanimously approved the estimated NAV and NAV per Share.
• The company continues to declare and pay special distributions, with the latest being $0.08 per share, demonstrating return of capital to shareholders.

Risks

• The estimated NAV and NAV per Share are based on estimates and assumptions that may not prove accurate or complete, and different participants could derive significantly different values.
• The estimated NAV does not represent the fair value of assets and liabilities in accordance with GAAP and is not audited.
• There is no assurance that a stockholder would be able to resell Common Shares at the estimated NAV per Share or realize distributions equal to it upon liquidation.
• Common Shares may not trade at the estimated NAV per Share if listed on a national securities exchange.
• An independent third-party appraiser or other valuation firm might disagree with the estimated NAV.
• The valuation methodology may not be acceptable to FINRA or under the Employee Retirement Income Security Act.
• The estimated NAV per Share does not reflect a discount for external management or any potential real estate portfolio premium/discount versus individual property values.
• Estimated disposition costs, fees, or prepayment penalties on debt obligations are not included in the NAV calculation.
• NAV will fluctuate over time due to future acquisitions/dispositions, asset developments, and changes in real estate and capital markets.
• Factors in a liquidation, such as transfer fees, disposition fees, prepayment penalties, or different buyer estimates, could cause actual realized amounts to be less than the estimated NAV per Share.
• If liquidation occurs through a listing on a national securities exchange, the market valuation may differ from estimated NAV, potentially based on FFO multiples of comparable REITs.
• If liquidation occurs through a merger, the amount realized may not equal the estimated NAV per Share due to various merger-specific factors.

Future Outlook

The estimated NAV and NAV per Share are expected to fluctuate over time due to future acquisitions or dispositions of assets, developments related to individual assets and their management, and changes in the real estate and financial markets. The company's Estimated Valuation Policy requires an annual update of the estimated NAV and NAV per Share value.

Management Comments

• "We believe our valuations were developed in a manner reasonably designed to ensure their reliability."

Industry Context

This announcement reflects the ongoing valuation practices for non-listed Real Estate Investment Trusts (REITs), particularly those focused on multifamily properties. The 4.3% increase in NAV per share suggests a positive trend in the underlying real estate market for these assets, potentially driven by factors such as rent growth and investor demand, aligning with broader trends in the resilient multifamily sector.

Corporate Governance

Related Party Transactions

• The company is externally managed by LSG Development Advisor LLC (the Advisor), an affiliate of The Lightstone Group LLC, which provides advisory services.
• Capright, the independent valuation firm, may be engaged to provide financial advisory services to the company, its Advisor, or other Lightstone-sponsored investment programs or their affiliates in the future.

Stakeholder Impact

• Shareholders benefit from the increase in estimated NAV per Share, indicating growth in their investment's underlying value.
• Shareholders also receive special distributions, providing a return on their investment.
• The valuation process, involving an independent firm and Board oversight, aims to provide transparency and confidence to investors regarding asset values.

Next Steps

• The Board of Directors will continue to review and approve each estimate of NAV and resulting NAV per Share.
• The company's Estimated Valuation Policy requires an annual update of the estimated NAV and NAV per Share value.

Key Dates

Recommendation

The 4.3% increase in NAV per share is a positive indicator of underlying asset performance for this non-listed REIT. However, the extensive disclosures regarding the limitations and inherent assumptions in the valuation process, coupled with the illiquid nature of a non-listed security, warrant a cautious 'hold' recommendation. Existing investors should acknowledge the appreciation but remain aware of the valuation's non-GAAP basis and potential discrepancies upon any future liquidity event. New investors should carefully weigh the growth against the significant risks and lack of public market pricing.

Keywords

REIT, Net Asset Value, NAV per Share, Real Estate, Multifamily Properties, Valuation, SEC Filing, Investment Properties, Special Distributions, Corporate Governance