PROCACCIANTI HOTEL REIT, INC. 8-K

What Happened

• Procaccianti Hotel REIT, Inc. (PRXA) filed an 8-K on June 12, 2026 (Board approved values June 11, 2026) announcing estimated per-share net asset values (NAVs) as of the valuation date March 31, 2026. The Board approved estimated NAVs of $10.17 for Class K-I and Class K shares, $5.91 for Class A shares, and $0.00 for Class B shares. Total estimated NAV was $58,520,850.
• The NAVs were prepared following the IPA Valuation Guideline and after appraisal work by independent firm Robert A. Stanger & Co., Inc. The filing also sets new Distribution Reinvestment Plan (DRIP) purchase prices and confirms repurchase pricing mechanics under the company’s share repurchase program.

Key Details

• Estimated NAV (March 31, 2026): $58,520,850 (vs. $59,193,384 on March 31, 2025).
• Per-share NAVs: K-I = $10.17; K = $10.17; A = $5.91 (down from $7.14); B = $0.00.
• Real estate component shown at $127,050,000; Stanger’s appraised value of the five appraised properties (company ownership interest) ~ $109.3 million. Secured notes payable estimated at $67,175,984.
• DRIP purchase price (effective next monthly DRIP): $9.66 per K share and $9.66 per K‑I share. Share repurchases will be priced as a percentage of the most recent estimated NAV (death/qualifying disability repurchases at 100% of NAV).
• Valuation sensitivity disclosed: small changes in capitalization or discount rates materially affect appraised values (examples included in filing). The NAVs are unaudited estimates and not GAAP fair value.

Why It Matters

• These NAV figures directly affect DRIP purchase prices and the mechanics used to price share repurchases, so they matter to shareholders who participate in reinvestment or repurchase programs. The DRIP price ($9.66) is below the K/K‑I estimated NAV ($10.17).
• The NAVs are estimates based on appraisals and assumptions (interest rates, cap rates, forecasts) and are not audited GAAP values — they can change and may differ from market trading prices or liquidation outcomes. Investors should note the A share NAV decline year-over-year and the B share valuation of $0.00.
• The company may update NAVs sooner than annually if it determines there has been a material adverse impact (the filing highlights sensitivity to inflation, interest rates, and cap-rate movements).