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<DIV style="width:576px"><P style="margin:0px; font-size:11pt" align=center><B>UNITED STATES</B></P>
<P style="margin:0px; font-size:11pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0px; font-size:11pt" align=center><B>Washington, D.C. 20549</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:11pt" align=center><B>FORM 8-K</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>CURRENT REPORT</P>
<P style="margin:0px; font-size:11pt" align=center><B>Pursuant to Section 13 or 15(d) of the</B></P>
<P style="margin:0px; font-size:11pt" align=center><B>Securities Exchange Act of 1934</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center>Date of Report (Date of earliest event reported): <B>April 2, 2018</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px; font-size:11pt" align=center><B><U>HARTMAN SHORT TERM INCOME PROPERTIES XX, INC.</U></B></P>
<P style="margin:0px; font-size:9pt" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="margin:0px" align=center><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD /><TD width=1.4 /><TD width=173 /><TD width=1.4 /><TD width=167.133 /></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom><P style="margin:0px" align=center><B><U>Maryland</U></B></P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=1.4><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=173><P style="margin:0px" align=center><B><U>333-185336</U></B></P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=1.4><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=167.133><P style="margin:0px" align=center><B><U>26-3455189</U></B></P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom><P style="margin:0px" align=center>(State&nbsp;or&nbsp;other&nbsp;jurisdiction&nbsp;of</P>
<P style="margin:0px" align=center>incorporation&nbsp;or&nbsp;organization)</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=1.4><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=173><P style="margin:0px" align=center>(Commission</P>
<P style="margin:0px" align=center>File&nbsp;Number)</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=1.4><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=167.133><P style="margin:0px" align=center>(I.R.S.&nbsp;Employer</P>
<P style="margin:0px" align=center>Identification&nbsp;No.)</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=1.4><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=173><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=1.4><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=167.133><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #000000" valign=bottom colspan=3><P style="margin:0px"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2909 Hillcroft, Suite 420, Houston, Texas</B></P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=1.4><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #000000" valign=bottom width=167.133><P style="margin:0px" align=center><B>77057</B></P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom colspan=3><P style="margin:0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Address&nbsp;of&nbsp;principal&nbsp;executive&nbsp;offices)</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=1.4><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=bottom width=167.133><P style="margin:0px" align=center>(Zip&nbsp;Code)</P>
</TD></TR>
</TABLE>
<P style="margin:0px">&nbsp;</P>
<P style="margin:0px" align=center>Registrant's telephone number, including area code: <B>(713) 467-2222</B></P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>Not applicable</B></P>
<P style="margin:0px" align=center>(Former Name or Former Address, if Changed Since Last Report)</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):</P>
<P style="margin:0px">&nbsp;</P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=48 /><TD width=36 /><TD /></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=48><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=36><P style="margin:0px; font-family:'Wingdings'">o</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top><P style="margin:0px">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>
</TD></TR>
</TABLE>
<P style="margin:0px">&nbsp;</P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=48 /><TD width=36 /><TD /></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=48><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=36><P style="margin:0px; font-family:'Wingdings'">o</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top><P style="margin:0px">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
</TD></TR>
</TABLE>
<P style="margin:0px">&nbsp;</P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=48 /><TD width=36 /><TD /></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=48><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=36><P style="margin:0px; font-family:'Wingdings'">o</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top><P style="margin:0px">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR &nbsp;240.14d-2(b))</P>
</TD></TR>
</TABLE>
<P style="margin:0px">&nbsp;</P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=48 /><TD width=36 /><TD /></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=48><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=36><P style="margin:0px; font-family:'Wingdings'">o</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top><P style="margin:0px">Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR &nbsp;240.13e-4(c))&nbsp;</P>
</TD></TR>
</TABLE>
<P style="margin:0px"><BR></P>
<P style="line-height:12pt; margin:0px" align=justify>Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR &#167;230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR &#167;240.12b-2).</P>
<P style="line-height:12pt; margin:0px" align=justify>&nbsp;</P>
<P style="line-height:11.75pt; margin:0px" align=justify>Emerging Growth Company <FONT style="font-family:'Segoe UI Symbol'"><font style="font-family:'Arial Unicode MS,Times New Roman'">&#9746;</font></FONT></P>
<P style="line-height:12pt; margin:0px" align=justify>&nbsp;</P>
<P style="line-height:12pt; margin:0px" align=justify>If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. <FONT style="font-family:'Segoe UI Symbol'"><font style="font-family:'Arial Unicode MS,Times New Roman'">&#9746;</font></FONT></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px; page-break-before:always"><B>Item 7.01 &nbsp;&nbsp;Regulation FD Disclosure.</B></P>
<P style="margin:0px"><BR></P>
<P style="margin:0px; text-indent:24px" align=justify>As discussed in more detail below, on March 29, 2018, the Board of Directors (the &#147;Board&#148;) of Hartman Short Term Income Properties XX, Inc. (the &#147;Company&#148;) determined an estimated net asset value (&#147;NAV&#148;) per share of the Company&#146;s common stock of $12.55 as of December 31, 2017.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:24px" align=justify>The information furnished under Item 7.01 of this Current Report on Form 8-K shall not be deemed to be &#147;filed&#148; for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px"><B>Item 8.01 &nbsp;&nbsp;Other Events.</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><B>The Determination by the Company&#146;s Board of Directors of the Company&#146;s Estimated Net Asset Value Per Share</B></P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:24px" align=justify>On March 29, 2018, the Board determined an estimated net asset value per share of the Company&#146;s common stock of $12.55 as of December 31, 2017. &nbsp;The Company is providing the estimated net asset value per share of its common stock to assist the broker dealers that participated in the Company&#146;s initial and follow-on public offerings in meeting their ongoing customer account statement reporting obligations under the current rules of the Financial Industry Regulatory Authority, Inc. (&#147;FINRA&#148;). &nbsp;</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:24px" align=justify>The Valuation Committee (the &#147;Valuation Committee&#148;) of the Board oversaw this process of determining the estimated value per share. &nbsp;In determining the estimated net asset value per share, the Valuation Committee relied upon information provided in a report provided by WKW Financial Advisors (&#147;WKW&#148;), an independent consulting firm providing authoritative studies, financial analysis, valuation and strategic advisory services, engaged with the approval of the Valuation Committee, and the Board&#146;s experience with, and knowledge of, the Company and its real property and other assets as of December 31, 2017.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:24px" align=justify>As outlined in WKWs report, dated March 5, 2018 (the &#147;Valuation Report&#148;), the scope of WKWs engagement and analysis included, but was not limited to:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:72px; font-family:'Symbol'; float:left">&#183;</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>Discussions with the Company&#146;s management to gather pertinent facts and data;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:72px; font-family:'Symbol'; float:left">&#183;</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>Examination of current market conditions including supply and demand factors, growth patterns, and their effect of each of the Company&#146;s properties;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:72px; font-family:'Symbol'; float:left">&#183;</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>Application of the income capitalization approach, by discounted cash flow or direct capitalization as appropriate, for each of the Company&#146;s properties;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:72px; font-family:'Symbol'; float:left">&#183;</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>Application of the sales comparison approach, as applicable or required to validate credible results, for any of the Company&#146;s properties which may or may not include an analysis of the ad valorem tax values;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:72px; font-family:'Symbol'; float:left">&#183;</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>Determination of an estimated value for each of the Company&#146;s properties;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:48px; width:72px; font-family:'Symbol'; float:left">&#183;</P>
<P style="margin:0px; padding-left:72px; text-indent:-2px" align=justify>Review of other assets and liabilities of the Company and estimation of their fair values as of the valuation date, including assets and liabilities which are contingent in nature as of the valuation date and which may not be quantified in the Company&#146;s financial statements or notes to financial statements as of the valuation date.</P>
<P style="margin:0px; clear:left"><BR></P>
<P style="margin:0px; text-indent:24px" align=justify>The following is a summary of the valuation methods used for the Company&#146;s assets and liabilities:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; text-indent:24px; page-break-before:always" align=justify><I>Real Estate Investments.</I> &nbsp;As of December 31, 2017, the Company owned or had a majority interest in 17 commercial properties. &nbsp;The Board determined the fair value of the Company&#146;s real estate investments to be $336,000,000, net of as of that date. This determination was based on an income capitalization approach. &nbsp;Real estate investment valuations were performed in accordance with Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation and Practice Guideline 2013-01, Valuations of Publicly Registered Non-Listed REITs, issued by the Investment Program Association, of the &#147;IPA,&#148; in April 2013.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:24px" align=justify><I>Other Assets and Liabilities.</I> The Valuation Report included an estimated valuation of the Company&#146;s other assets and liabilities, consisting primarily of cash and cash equivalents, restricted cash, accounts receivable, and other prepaid expenses and other assets. &nbsp;These other assets and liabilities were considered by the Board to be equal to their fair values as of December 31, 2016 due to their short maturities.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:24px" align=justify><I>Notes Payable.</I> &nbsp;The Valuation Report included an estimated valuation of the Company&#146;s notes payable as equal to fair value as of December 31, 2017. &nbsp;The Board determined that the fair value of notes payable as of December 31, 2017 was $118,358,000.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:24px" align=justify><I>Estimated Value Per Share.</I> &nbsp;The estimated value per share was based upon 18,003,520 shares of the Company&#146;s common stock outstanding as of December 31, 2017. &nbsp;Although the estimated value per share has been developed as a measure of value as of a specific time, December 31, 2017, the estimated value per share does not reflect a liquidity discount for the fact that the shares are not currently traded on a national securities exchange or the limited nature in which a shareholder may redeem shares under the Company&#146;s share redemption program (if at all), a discount for the non-assumability or prepayment obligations associated with certain of the Company&#146;s debt, or a discount for the Company&#146;s corporate level overhead.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:24px" align=justify>The following table presents how the estimated net asset value per share was determined as of December 31, 2017:</P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=421.2 /><TD width=154.8 /></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#FFFFFF; border-bottom:2px solid #00FFFF" valign=top width=421.2><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#FFFFFF; border-bottom:2px solid #00FFFF" valign=top width=154.8><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Investment in real estate assets</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px" align=right>$335,600,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Cash, cash equivalents and restricted cash</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px" align=right>3,957,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Other assets and liabilities (excluding goodwill), net</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-bottom:1px solid #000000" valign=top width=154.8><P style="margin:0px" align=right>31,737,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px" align=right>371,294,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Notes payable</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px" align=right>118,538,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Net asset value of minority interest in Westway One LLC</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px" align=right>6,659,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Net asset value of minority interest in Three Forest Plaza LLC</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px" align=right>13,553,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Value of convertible preferred shares</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-bottom:1px solid #000000" valign=top width=154.8><P style="margin:0px" align=right>6,587,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px" align=right>145,337,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-bottom:1px solid #000000" valign=top width=154.8><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Estimated net asset value attributable to common share stockholders</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:3px double #000000" valign=top width=154.8><P style="margin:0px" align=right>225,927,000</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Common stock outstanding</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:3px double #000000" valign=top width=154.8><P style="margin:0px" align=right>18,003,520</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Estimated net asset value per common share</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-bottom:3px double #000000" valign=top width=154.8><P style="margin:0px" align=right>$12.55</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Estimated net asset value per common share allocated on a per share basis:</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Investment in real estate assets</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px" align=right>$18.64</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Cash, cash equivalents and restricted cash</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px" align=right>0.22</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Other assets and liabilities, net</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px" align=right>1.76</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Notes payable</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px" align=right>(6.58)</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Net asset value of minority interest in Westway One LLC</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px" align=right>(0.37)</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Net asset value of minority interest in Village Pointe LLC</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #00FFFF" valign=top width=154.8><P style="margin:0px" align=right>(0.75)</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Value of convertible preferred shares</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#DEEAF6; border-bottom:1px solid #000000" valign=top width=154.8><P style="margin:0px" align=right>(0.37)</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #00FFFF; border-bottom:1px solid #00FFFF" valign=top width=421.2><P style="margin:0px" align=justify>Estimated net asset value per common share</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:3px double #000000" valign=top width=154.8><P style="margin:0px" align=right>$12.55</P>
</TD></TR>
</TABLE>
<P style="margin:0px" align=justify>&nbsp;</P>
<P style="margin:0px" align=justify><BR>
<BR></P>
<P style="margin:0px; text-indent:24px; page-break-before:always" align=justify><I>Material Assumptions in Property Valuations.</I> &nbsp;WKW made certain key assumptions in the income capitalization approach that it used to value the Company&#146;s real estate properties, which are set forth below:</P>
</DIV><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=433.2 /><TD width=157.2 /></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#FFFFFF; border-bottom:2px solid #DFDFDF" valign=top width=433.2><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#FFFFFF; border-bottom:2px solid #DFDFDF" valign=top width=157.2><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#D9E2F3; border-right:1px solid #DFDFDF; border-bottom:1px solid #DFDFDF" valign=top width=433.2><P style="margin:0px" align=justify>Direct capitalization &#150; capitalization rate</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#D9E2F3; border-bottom:1px solid #DFDFDF" valign=top width=157.2><P style="margin:0px" align=right>6.49%</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #DFDFDF; border-bottom:1px solid #DFDFDF" valign=top width=433.2><P style="margin:0px" align=justify>Yield capitalization &#150; discount rate</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #DFDFDF" valign=top width=157.2><P style="margin:0px" align=right>7.89%</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#D9E2F3; border-right:1px solid #DFDFDF; border-bottom:1px solid #DFDFDF" valign=top width=433.2><P style="margin:0px" align=justify>Yield capitalization &#150; terminal capitalization rate</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#D9E2F3; border-bottom:1px solid #DFDFDF" valign=top width=157.2><P style="margin:0px" align=right>7.78%</P>
</TD></TR>
</TABLE>
<DIV style="width:576px"><P style="margin:0px" align=justify><BR></P>
<P style="margin:0px; text-indent:24px" align=justify>While the Company believes that WKW&#146;s assumptions are reasonable, a change in these assumptions would significantly impact the appraised value of the Company&#146;s real estate investments and thus, the Company&#146;s estimated value per share. The table below illustrates the impact on the estimated value per share if the capitalization rates and discount rate listed above were increased or decreased by 2.5%, assuming all other factors remain unchanged:</P>
<P style="margin:0px" align=justify><BR></P>
</DIV><TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0><TR height=0 style="font-size:0"><TD width=319.2 /><TD width=138 /><TD width=133.2 /></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#FFFFFF; border-bottom:2px solid #DFDFDF" valign=top width=319.2><P style="margin:0px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#FFFFFF; border-right:1px solid #DFDFDF; border-bottom:1px solid #000000" valign=bottom width=271.2 colspan=2><P style="margin:0px" align=center><B>Increase (Decrease) in the Estimated Value per Share due to</B></P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#D9E2F3; border-right:1px solid #DFDFDF; border-bottom:1px solid #DFDFDF" valign=top width=319.2><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#D9E2F3; border-right:1px solid #DFDFDF; border-bottom:1px solid #000000" valign=bottom width=138><P style="margin:0px" align=center><B>Decrease of 2.5%</B></P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#D9E2F3; border-bottom:1px solid #000000" valign=bottom width=133.2><P style="margin:0px" align=center><B>Increase of 2.5%</B></P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #DFDFDF; border-bottom:1px solid #DFDFDF" valign=top width=319.2><P style="margin:0px" align=justify>Direct capitalization &#150; capitalization rate</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #DFDFDF; border-bottom:1px solid #DFDFDF" valign=top width=138><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.03</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #DFDFDF" valign=top width=133.2><P style="margin:0px" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.09</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#D9E2F3; border-right:1px solid #DFDFDF; border-bottom:1px solid #DFDFDF" valign=top width=319.2><P style="margin:0px" align=justify>Yield capitalization &#150; discount rate</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#D9E2F3; border-right:1px solid #DFDFDF; border-bottom:1px solid #DFDFDF" valign=top width=138><P style="margin:0px" align=right>NA</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; background-color:#D9E2F3; border-bottom:1px solid #DFDFDF" valign=top width=133.2><P style="margin:0px" align=right>NA</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #DFDFDF; border-bottom:1px solid #DFDFDF" valign=top width=319.2><P style="margin:0px" align=justify>Yield capitalization &#150; terminal capitalization rate</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-right:1px solid #DFDFDF; border-bottom:1px solid #DFDFDF" valign=top width=138><P style="margin:0px" align=right>NA</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:1px solid #DFDFDF" valign=top width=133.2><P style="margin:0px" align=right>NA</P>
</TD></TR>
</TABLE>
<DIV style="width:576px"><P style="margin:0px" align=justify>&nbsp;&nbsp;</P>
<P style="margin:0px; text-indent:24px" align=justify><I>Limitations of Valuation Method</I>. FINRA rules provide limited guidance on the methods an issuer must use to determine its estimated value per share. As with any valuation method, and as noted above, the methods used to determine the Company&#146;s estimated value per share were based upon a number of assumptions, estimates and judgments that may not be accurate or complete. The estimated value per share determined by the Board is not a representation, warranty or guarantee that, among other things:</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:'Symbol'; float:left">&#183;</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify>a stockholder would be able to realize the estimated value per share if such stockholder attempts to sell his or her shares;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:'Symbol'; float:left">&#183;</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify>a stockholder would ultimately realize distributions per share equal to the estimated value per share upon liquidation of the Company&#146;s assets and settlement of the Company&#146;s liabilities or a sale of the Company;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:'Symbol'; float:left">&#183;</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify>shares of the Company&#146;s common stock would trade at the estimated value per share on a national securities exchange;</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:'Symbol'; float:left">&#183;</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify>a third party would offer the estimated value per share in an arms-length transaction to purchase all or substantially all of the shares of the Company&#146;s common stock; or</P>
<P style="margin:0px; clear:left" align=justify><BR></P>
<P style="margin-top:0px; margin-bottom:-2px; text-indent:24px; width:48px; font-family:'Symbol'; float:left">&#183;</P>
<P style="margin:0px; padding-left:48px; text-indent:-2px" align=justify>the methods used to determine the estimated value per share would be acceptable to FINRA, under the Employee Retirement Income Security Act, the Securities and Exchange Commission or any state securities regulatory entity with respect to their respective requirements.</P>
<P style="margin:0px; text-indent:24px; clear:left" align=justify>&nbsp;</P>
<P style="margin:0px; text-indent:24px" align=justify>Further, the estimated value per share was calculated as of a particular moment in time and the value of the Company&#146;s shares will fluctuate over time as a result of, among other things, future acquisitions or dispositions of assets (including acquisitions and dispositions of real estate investments since September 30, 2016), developments related to individual assets and changes in the real estate and capital markets.</P>
<P style="margin:0px; text-indent:24px" align=justify>&nbsp;</P>
<P style="margin:0px; text-indent:24px" align=justify>The information furnished under Item 7.01 of this Current Report on Form 8-K, shall not be deemed to be &#147;filed&#148; for the purpose of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.</P>
<P style="margin:0px" align=justify><BR></P>
<P style="margin:0px"><BR>
<BR></P>
<P style="margin:0px; page-break-before:always"><BR></P>
<P style="margin:0px" align=center>__________________________________________________________________</P>
<P style="margin:0px" align=center><BR></P>
<P style="margin:0px" align=center><B>SIGNATURE</B></P>
<P style="margin:0px">&nbsp;</P>
<P style="margin:0px" align=justify>Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</P>
<P style="margin:0px" align=justify><BR></P>
<TABLE style="margin-top:0px; font-size:10pt" cellpadding=0 cellspacing=0 width=100%><TR height=0 style="font-size:0"><TD width=198 /><TD width=30.2 /><TD /></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=198><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=378 colspan=2><P style="margin:0px">HARTMAN SHORT TERM INCOME PROPERTIES XX, INC. </P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=198><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=378 colspan=2><P style="margin:0px; padding-left:9.6px; padding-right:9.6px">&nbsp;</P></TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=198><P style="margin:0px">Date: April 2, 2018</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=30.2><P style="margin:0px">By:&nbsp;&nbsp;</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px; border-bottom:2px solid #000000" valign=top><P style="margin:0px">/s/ Louis T. Fox, III</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=228.2 colspan=2><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top><P style="margin:0px">Louis T. Fox, III</P>
</TD></TR>
<TR><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top width=228.2 colspan=2><P style="margin:0px">&nbsp;&nbsp;</P>
</TD><TD style="margin-top:0px; padding-left:9.6px; padding-top:0px; padding-right:9.6px; padding-bottom:0px" valign=top><P style="margin:0px">Chief Financial Officer</P>
</TD></TR>
</TABLE>
<P style="margin:0px">&nbsp;</P>
<P style="margin:0px"><BR>
<BR></P>
</DIV></BODY>
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Converted by EDGARwiz
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
April 2, 2018
HARTMAN SHORT TERM INCOME PROPERTIES XX, INC.
(Exact name of registrant as specified in its charter)
Maryland
333-185336
26-3455189
(State or other jurisdiction of
incorporation or organization)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
2909 Hillcroft, Suite 420, Houston, Texas
77057
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code:
(713) 467-2222
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR  240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR  240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging Growth Company
☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☒
Item 7.01   Regulation FD Disclosure.
As discussed in more detail below, on March 29, 2018, the Board of Directors (the "Board") of Hartman Short Term Income Properties XX, Inc. (the "Company") determined an estimated net asset value ("NAV") per share of the Company's common stock of $12.55 as of December 31, 2017.
The information furnished under Item 7.01 of this Current Report on Form 8-K shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 8.01   Other Events.
The Determination by the Company's Board of Directors of the Company's Estimated Net Asset Value Per Share
On March 29, 2018, the Board determined an estimated net asset value per share of the Company's common stock of $12.55 as of December 31, 2017.  The Company is providing the estimated net asset value per share of its common stock to assist the broker dealers that participated in the Company's initial and follow-on public offerings in meeting their ongoing customer account statement reporting obligations under the current rules of the Financial Industry Regulatory Authority, Inc. ("FINRA").
The Valuation Committee (the "Valuation Committee") of the Board oversaw this process of determining the estimated value per share.  In determining the estimated net asset value per share, the Valuation Committee relied upon information provided in a report provided by WKW Financial Advisors ("WKW"), an independent consulting firm providing authoritative studies, financial analysis, valuation and strategic advisory services, engaged with the approval of the Valuation Committee, and the Board's experience with, and knowledge of, the Company and its real property and other assets as of December 31, 2017.
As outlined in WKWs report, dated March 5, 2018 (the "Valuation Report"), the scope of WKWs engagement and analysis included, but was not limited to:
·
Discussions with the Company's management to gather pertinent facts and data;
·
Examination of current market conditions including supply and demand factors, growth patterns, and their effect of each of the Company's properties;
·
Application of the income capitalization approach, by discounted cash flow or direct capitalization as appropriate, for each of the Company's properties;
·
Application of the sales comparison approach, as applicable or required to validate credible results, for any of the Company's properties which may or may not include an analysis of the ad valorem tax values;
·
Determination of an estimated value for each of the Company's properties;
·
Review of other assets and liabilities of the Company and estimation of their fair values as of the valuation date, including assets and liabilities which are contingent in nature as of the valuation date and which may not be quantified in the Company's financial statements or notes to financial statements as of the valuation date.
The following is a summary of the valuation methods used for the Company's assets and liabilities:
Real Estate Investments.
As of December 31, 2017, the Company owned or had a majority interest in 17 commercial properties.  The Board determined the fair value of the Company's real estate investments to be $336,000,000, net of as of that date. This determination was based on an income capitalization approach.  Real estate investment valuations were performed in accordance with Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation and Practice Guideline 2013-01, Valuations of Publicly Registered Non-Listed REITs, issued by the Investment Program Association, of the "IPA," in April 2013.
Other Assets and Liabilities.
The Valuation Report included an estimated valuation of the Company's other assets and liabilities, consisting primarily of cash and cash equivalents, restricted cash, accounts receivable, and other prepaid expenses and other assets.  These other assets and liabilities were considered by the Board to be equal to their fair values as of December 31, 2016 due to their short maturities.
Notes Payable.
The Valuation Report included an estimated valuation of the Company's notes payable as equal to fair value as of December 31, 2017.  The Board determined that the fair value of notes payable as of December 31, 2017 was $118,358,000.
Estimated Value Per Share.
The estimated value per share was based upon 18,003,520 shares of the Company's common stock outstanding as of December 31, 2017.  Although the estimated value per share has been developed as a measure of value as of a specific time, December 31, 2017, the estimated value per share does not reflect a liquidity discount for the fact that the shares are not currently traded on a national securities exchange or the limited nature in which a shareholder may redeem shares under the Company's share redemption program (if at all), a discount for the non-assumability or prepayment obligations associated with certain of the Company's debt, or a discount for the Company's corporate level overhead.
The following table presents how the estimated net asset value per share was determined as of December 31, 2017:
Investment in real estate assets
$335,600,000
Cash, cash equivalents and restricted cash
3,957,000
Other assets and liabilities (excluding goodwill), net
31,737,000
371,294,000
Notes payable
118,538,000
Net asset value of minority interest in Westway One LLC
6,659,000
Net asset value of minority interest in Three Forest Plaza LLC
13,553,000
Value of convertible preferred shares
6,587,000
145,337,000
Estimated net asset value attributable to common share stockholders
225,927,000
Common stock outstanding
18,003,520
Estimated net asset value per common share
$12.55
Estimated net asset value per common share allocated on a per share basis:
Investment in real estate assets
$18.64
Cash, cash equivalents and restricted cash
0.22
Other assets and liabilities, net
1.76
Notes payable
(6.58)
Net asset value of minority interest in Westway One LLC
(0.37)
Net asset value of minority interest in Village Pointe LLC
(0.75)
Value of convertible preferred shares
(0.37)
Estimated net asset value per common share
$12.55
Material Assumptions in Property Valuations.
WKW made certain key assumptions in the income capitalization approach that it used to value the Company's real estate properties, which are set forth below:
Direct capitalization – capitalization rate
6.49%
Yield capitalization – discount rate
7.89%
Yield capitalization – terminal capitalization rate
7.78%
While the Company believes that WKW's assumptions are reasonable, a change in these assumptions would significantly impact the appraised value of the Company's real estate investments and thus, the Company's estimated value per share. The table below illustrates the impact on the estimated value per share if the capitalization rates and discount rate listed above were increased or decreased by 2.5%, assuming all other factors remain unchanged:
Increase (Decrease) in the Estimated Value per Share due to
Decrease of 2.5%
Increase of 2.5%
Direct capitalization – capitalization rate
$                 13.03
$                12.09
Yield capitalization – discount rate
NA
NA
Yield capitalization – terminal capitalization rate
NA
NA
Limitations of Valuation Method
. FINRA rules provide limited guidance on the methods an issuer must use to determine its estimated value per share. As with any valuation method, and as noted above, the methods used to determine the Company's estimated value per share were based upon a number of assumptions, estimates and judgments that may not be accurate or complete. The estimated value per share determined by the Board is not a representation, warranty or guarantee that, among other things:
·
a stockholder would be able to realize the estimated value per share if such stockholder attempts to sell his or her shares;
·
a stockholder would ultimately realize distributions per share equal to the estimated value per share upon liquidation of the Company's assets and settlement of the Company's liabilities or a sale of the Company;
·
shares of the Company's common stock would trade at the estimated value per share on a national securities exchange;
·
a third party would offer the estimated value per share in an arms-length transaction to purchase all or substantially all of the shares of the Company's common stock; or
·
the methods used to determine the estimated value per share would be acceptable to FINRA, under the Employee Retirement Income Security Act, the Securities and Exchange Commission or any state securities regulatory entity with respect to their respective requirements.
Further, the estimated value per share was calculated as of a particular moment in time and the value of the Company's shares will fluctuate over time as a result of, among other things, future acquisitions or dispositions of assets (including acquisitions and dispositions of real estate investments since September 30, 2016), developments related to individual assets and changes in the real estate and capital markets.
The information furnished under Item 7.01 of this Current Report on Form 8-K, shall not be deemed to be "filed" for the purpose of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
__________________________________________________________________
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
HARTMAN SHORT TERM INCOME PROPERTIES XX, INC.
Date: April 2, 2018
By:
/s/ Louis T. Fox, III
Louis T. Fox, III
Chief Financial Officer