Last week, I published an updated analysis on RVI. In the analysis, I estimated an 8.4% cap rate for the 8 assets that RVI has sold. However, this is just my estimate as management has not disclosed the cap rates yet.

I wanted to share the methodology that I used to estimate the capitalization rates (cap rates). The best way to show my methodology is to walk through my estimate for one of the asset sales. We can walk through Silver Spring, RVI’s first sale, which occurred in April 2018 (prior to the official spin-off).