Orlando, Fla., March 11, 2021 (GLOBE NEWSWIRE) – CNL Healthcare Properties, a real estate investment trust focused on senior housing, has announced that its board of directors has unanimously approved an estimated net asset value (NAV ) per share of $ 7.38 as of December 31, 2020. The previous estimated net asset value of the company was $ 7.81 per share as of December 31, 2019.
The value of the company’s 71 valued assets (69 senior housing assets, a plot of land and an acute care facility) decreased by approximately 4.7% from net asset value for the year. former. Specifically and primarily as a result of the pandemic, 54 of the company’s senior housing units managed under third-party agreements reflected lower current and forecasted real estate cash flows, as well as an increased lead time to meet targets. occupancy stabilization, while CNL Healthcare Properties’ 15 triple net housing properties reflect increasing capitalization rates due to lower lease coverage. The decrease in the appraised value was partially offset by the company’s profit in excess of distributions for the year. The estimated net asset value 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 affecting many industries, including the senior housing segment. Across the industry, occupancy rates and real estate cash flow have been particularly affected and uncertainty over the effects of the pandemic on future operating trends remains, ”said Stephen H. Mauldin, President and CEO of CNL Healthcare Properties. “Right now, we believe the company is well positioned financially, given its low level of debt and strong liquidity. Given the market and industry disruptions over the past year, we have understandably been forced to shift our focus away from pursuing broader strategic alternatives to provide more liquidity to shareholders. However, our Board of Directors and its Special Committee continue to carefully study market data and potential options with the aim of identifying and executing liquidity alternatives that are deemed to be in the best interests of our shareholders.
The valuation was performed by Robert A. Stanger & Co. Inc (Stanger), an independent valuation firm, in accordance with the firm’s valuation policy and guidelines established by the Institute for Portfolio Alternatives, an association professional for non-direct investment programs listed. Stanger provided CNL Healthcare Properties with a net asset value of between $ 7.01 and $ 7.79 per share. The valuation committee, composed exclusively of independent directors, unanimously recommended $ 7.38 as the estimated net asset value per share, and the recommendation was unanimously adopted by the board of directors.
For more information on the estimated net asset value, please read the current report on Form 8-K filed on March 11, 2021 with the United States Securities and Exchange Commission.
About CNL Healthcare Properties
CNL Healthcare Properties, Inc., is a real estate investment trust (REIT) that focuses on quality institutional properties in senior housing, including stabilized, value-added and core development assets. CNL Financial Group, LLC is the limited partner of CNL Healthcare Properties. For more information visit cnlhealthcareproperties.com.
About CNL Financial Group
The CNL Financial Group (CNL) is a private investment management company offering real estate and alternative investments. Since their inception in 1973, CNL and / or its affiliates have formed or acquired companies with over $ 34 billion in assets. CNL is headquartered in Orlando, Florida. For more information visit cnl.com.