NAV (Net Asset Value)
Net asset value (NAV) is the per-share value of a fund or REIT, total assets minus liabilities divided by shares, used to price shares and track worth.
Definition
Net asset value (NAV) is the value of an investment's assets minus its liabilities, usually stated per share or per unit. For a mutual fund it is calculated daily; for a non-traded REIT it is typically appraised periodically. The formula is simple: total assets minus total liabilities, divided by the number of shares outstanding.
NAV matters most for NAV REITs and non-traded REITs, where there is no public market price. Instead, the sponsor computes NAV, often monthly or quarterly, based on independent appraisals of the underlying real estate, and investors buy and sell at that NAV. If a REIT owns $1 billion of property with $400 million of debt and 60 million shares, its NAV is $10 per share.
For 721 exchange investors holding OP units, NAV drives the value of their units and any share redemptions, so understanding how and how often it is calculated is important due diligence.
Key points
- Total assets minus liabilities, divided by shares outstanding
- Used to price non-traded and NAV REITs
- Based on periodic independent property appraisals
- Determines OP unit value for 721 exchange investors
Related terms
Jerry Baker founded Baker 1031 Investments to help exchange investors move from active property ownership into passive, institutional-quality real estate through DST, 721 exchange, mineral royalty, and Opportunity Zone strategies. He holds the FINRA Series 22 and Series 63 registrations and the Securities Industry Essentials (SIE) qualification. Read full bio →
Reviewed by the Aurora Securities, Inc. compliance team — Aurora Securities, Inc., member FINRA/SIPC. Last reviewed July 2026. Securities are offered through Aurora Securities, Inc.; Baker 1031 Investments, LLC is independent of Aurora Securities, Inc.
This glossary entry is educational and is not investment, tax, or legal advice, or an offer to sell or a solicitation to buy any security. Definitions are general and may not reflect your specific circumstances — consult your own CPA and attorney. Past performance does not guarantee future results.