AMERICAN REALTY CAPITAL DAILY NET ASSET VALUE TRUST, INC
MONTHLY PRICING SUPPLEMENT, DATED OCTOBER 1, 2014,
TO THE PROSPECTUS, DATED JULY 22, 2014
Monthly Pricing Supplement
(unaudited)
On October 1, 2014, our net asset value (“NAV”) per institutional share is $9.943 and our NAV per retail share is $10.166.
The following sets forth the calculation of NAV for each of the institutional shares and retail shares:
| Net Asset Value as of September 2, 2014: | $ | 24,445,473.49 |
| Net Assets as of October 1, 2014: | ||
| Real Estate Properties, at Fair Value | $ | 36,710,000.00 |
| Non-Real Estate Assets (1) | ||
| Cash and Cash Equivalents | 1,015,794.90 | |
| Subscriptions Receivable | 2,434.43 | |
| Prepaid Organizational and Other Costs | 6,092,214.23 | |
| Total Assets | 43,820,443.56 | |
| Liabilities | ||
| Financing | 16,434,451.83 | |
| Deferred Revenue | 135,336.71 | |
| Redemptions Payable | - | |
| Other Liabilities (1) | 2,692,023.93 | |
| Total liabilities | 19,261,812.47 | |
| Net Asset Value | $ | 24,558,631.09 |
(1) As described in “Valuation Policies” in our Prospectus, the Company estimates operating income and certain expenses and adds, or deducts, the daily accrual of such estimated expenses in determining NAV. Any operating income or such expense items that exceed the amount of such estimates will be adjusted monthly on a going forward basis.
The NAV per share for a particular day can be found on our website at www.arcdailynav.com or by calling our toll-free, automated telephone line at 1-866-532-4743.
www.arcdailynav.com - 1.866.532.4743
Below is the NAV per share for each of the institutional shares and the retail shares for each day subsequent to our last pricing supplement.
| NAV per | NAV per retail | |||
| Date | institutional share | share | ||
| September 3, 2014 | $ | 9.943 | $ | 10.160 |
| September 4, 2014 | $ | 9.943 | $ | 10.160 |
| September 5, 2014 | $ | 9.943 | $ | 10.160 |
| September 8, 2014 | $ | 9.943 | $ | 10.161 |
| September 9, 2014 | $ | 9.943 | $ | 10.162 |
| September 10, 2014 | $ | 9.943 | $ | 10.162 |
| September 11, 2014 | $ | 9.943 | $ | 10.162 |
| September 12, 2014 | $ | 9.943 | $ | 10.162 |
| September 15, 2014 | $ | 9.943 | $ | 10.162 |
| September 16, 2014 | $ | 9.943 | $ | 10.163 |
| September 17, 2014 | $ | 9.943 | $ | 10.163 |
| September 18, 2014 | $ | 9.943 | $ | 10.163 |
| September 19, 2014 | $ | 9.943 | $ | 10.163 |
| September 22, 2014 | $ | 9.943 | $ | 10.164 |
| September 23, 2014 | $ | 9.943 | $ | 10.164 |
| September 24, 2014 | $ | 9.943 | $ | 10.164 |
| September 25, 2014 | $ | 9.943 | $ | 10.165 |
| September 26, 2014 | $ | 9.943 | $ | 10.165 |
| September 29, 2014 | $ | 9.943 | $ | 10.165 |
| September 30, 2014 | $ | 9.943 | $ | 10.166 |
| October 1, 2014 | $ | 9.943 | $ | 10.166 |
www.arcdailynav.com - 1.866.532.4743
The real estate properties have initially been valued at cost, which we believe represents fair value. After such initial valuations, the value of these properties will be determined taking into consideration the valuations performed by our independent valuer, which will be performed on each property at least one calendar quarter after its acquisition.
As of October 1, 2014, the valuation of $36.7 million compares to a GAAP basis of real estate properties (before accumulated depreciation and amortization) of $34.7 million, representing an increase of approximately $2 million or 6%. The following are key assumptions (shown on a weighted-average basis) that are used in the direct capitalization models to estimate the value of our real estate investments by property type:
| Property | Type | Overall Cap | Direct Cap | ||
| Rate | Value | ||||
| Carlisle, IA | Retail | 7.25% | $ | 1,230,000 | |
| Phoenix, AZ | Retail | 7.00% | $ | 2,160,000 | |
| Gloster, MS | Retail | 8.50% | $ | 810,000 | |
| Alorton, IL | Retail | 8.25% | $ | 1,000,000 | |
| Kansas, OK | Retail | 8.50% | $ | 1,060,000 | |
| Woodville, MS | Retail | 8.50% | $ | 820,000 | |
| Chili, NY | Industrial | 7.00% | $ | 21,150,000 | |
| Temple, TX | Retail | 7.50% | $ | 1,100,000 | |
| Converse, TX | Retail | 7.50% | $ | 1,100,000 | |
| Slidell, LA | Retail | 7.00% | $ | 980,000 | |
| New Castle, IN | Retail | 7.25% | $ | 720,000 | |
| Sturgeon Bay, WI | Office | 8.50% | $ | 620,000 | |
| Evanston, WY | Industrial | 7.00% | $ | 2,060,000 | |
| Clayton, NC | Retail | 7.25% | $ | 1,900,000 | |
| Weighted Average Basis | 7.23% |
A change in the rates used would impact the calculation of the value of our properties. For example, assuming all other factors remain constant, an increase in the weighted average annual overall capitalization rate of 0.25% would reduce the value of our real properties as of October 1, 2014 by approximately 3.35%.
This is only a mathematical illustration and is not intended to qualify the values reflected above.
www.arcdailynav.com - 1.866.532.4743