Hartman vREIT XXI, Inc. 8-K

What Happened

• Hartman vREIT XXI filed an 8-K (Item 8.01) disclosing that its Board, including all independent directors, determined an estimated net asset value (NAV) of $8.12 per share for its Class A, S, I and T common stock as of December 31, 2025. The Board based the estimate on a valuation report prepared by the company's advisor, the Board’s audit committee recommendation, and the Board’s own knowledge of the assets; the advisor used Practice Guideline 2013-01 and relied in part on property valuations from Herrera Partners (the Valuation Expert).
• The company’s estimated NAV is unaudited, not a GAAP fair value, does not include a liquidity discount or other reductions, and is provided to help broker‑dealers meet FINRA reporting obligations. The Board intends to determine NAV quarterly or as it elects.

Key Details

• Estimated NAV per share: $8.12, based on 9,245,987 shares outstanding (as of 12/31/2025); total estimated NAV attributable to common shareholders: $75,064,000.
• Asset breakdown (unaudited): real estate assets $93,571,000; Hartman SPE interest $2,100,000 (2.47% of Hartman SPE NAV net of debt $85,000,000); Silver Star holdings $2,529,000 (1,258,406 shares, using Silver Star’s reported NAV of $2.01/share); other assets and liabilities, net: $(23,136,000).
• Capitalization rates used by the Valuation Expert: low 6.0%, high 8.5%, weighted average reported 5.5%; NAV sensitivity: if the weighted cap rate increases by 2.5% NAV/share would be $7.18, if it decreases by 2.5% NAV/share would be $10.25.
• Limitations noted: Valuation Expert did not inspect properties and did not itself determine the Company’s NAV; the NAV is based on assumptions and is not a guarantee of realizable sale or liquidation value.

Why It Matters

• This estimated NAV gives investors and broker‑dealers a current per‑share value for reporting and comparison purposes, but it is unaudited, subject to modeling assumptions (especially cap rates), and not a guaranteed market price. Changes in property valuations, capitalization rates, or future transactions could materially change the NAV; investors should treat this as an estimate, not a traded market value.