Dividend Capital Total Realty Trust announces valuation

Dividend Capital Total Realty Trust announced that its board established an estimated value per share of its common stock as of March 11, 2011 of $8.45.  The REIT’s Form 8-K provided a very brief description of how the board determined an estimated value, including the fact that the board relied upon information provided by DCTRT’s advisor and by an undisclosed independent third party investment banking firm, as well as the board’s experience with, and knowledge about, DCTRT’s real estate portfolio and debt obligations. The board considered valuation methodologies including, among others, a discounted cash flow analysis.  In addition, the board reviewed current, historical and projected cap rates for commercial properties similar to the properties owned by DCTRT, and the values of publicly traded REITs with portfolios comparable to DCTRT’s portfolio.  The board also took into account the estimated value of DCTRT’s other assets and liabilities, including an estimate of the value of DCTRT’s debt obligations.  The Form 8-K provided no information about the specific role of the investment banking firm, the assumptions utilized in applying the valuation methodologies (such a discount rates and cap rates), or the ranges of values indicated by the various methodologies utilized.

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