CNL Healthcare Properties Announces Net Asset Value Per Share of $7.38
(ORLANDO, Fla.) March 11, 2021 — CNL Healthcare Properties, a real estate investment trust focused on seniors housing, announced that its board of directors unanimously approved an estimated net asset value (NAV) per share of $7.38 as of Dec. 31, 2020. The company’s previous estimated NAV was $7.81 per share as of Dec. 31, 2019.
The value of the company’s 71 appraised assets (69 seniors housing assets, one parcel of land and one acute care facility), declined by approximately 4.7% compared to the prior year’s NAV. Specifically and principally due to the pandemic, 54 of the company’s seniors housing properties managed under third-party agreements reflected lower current and projected property cash flows, along with increased time to reach occupancy stabilization targets, while CNL Healthcare Properties’ 15 triple-net leased properties reflect increased capitalization rates due to lower lease coverages. The decline in appraised value was partially offset by the company’s earnings in excess of distributions for the year. The estimated NAV includes an adjustment for CNL Healthcare Properties’ current projection of approximate property-level transaction costs in a hypothetical orderly disposition scenario.
“The economic impact of the pandemic has been widespread, negatively impacting many industries, including the seniors housing segment. Across the sector, occupancies and property cash flows have been notably affected and uncertainty as to the pandemic’s effects on future operating trends persists,” said Stephen H. Mauldin, president and CEO of CNL Healthcare Properties. “At this time, we believe the company is financially well-positioned, taking into consideration its low debt level, and solid liquidity position. Given the market and industry disruptions last year, we were naturally forced to shift our focus away from the pursuit of larger strategic alternatives to provide further liquidity to shareholders. However, our board and its special committee continue to carefully study market data and potential options with the goal of identifying and executing liquidity alternatives that are judged to be in our shareholders’ best interests.”
The valuation was conducted by Robert A. Stanger & Co. Inc (Stanger), an independent third-party valuation firm, in accordance with the company’s valuation policy and the guidelines set forth by the Institute for Portfolio Alternatives, a trade association for non-listed direct investment programs. Stanger provided CNL Healthcare Properties with a NAV range of $7.01 to $7.79 per share. The valuation committee, comprised exclusively of independent directors, unanimously recommended $7.38 as the estimated NAV per share, and the recommendation was unanimously adopted by the board of directors.
For additional information on the estimated NAV, please read the current report on Form 8-K filed March 11, 2021, with the U.S. Securities and Exchange Commission.
About CNL Healthcare Properties
CNL Healthcare Properties, Inc., is a real estate investment trust (REIT) that focuses on institutional quality properties in seniors housing, including stabilized, value-add and ground-up development assets. CNL Financial Group, LLC is the sponsor of CNL Healthcare Properties. For more information, visit cnlhealthcareproperties.com.
About CNL Financial Group
CNL Financial Group (CNL) is a private investment management firm providing real estate and alternative investments. Since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $34 billion in assets. CNL is headquartered in Orlando, Florida. For more information, visit cnl.com.