Orlando, Fla., March 26, 2020 (GLOBE NEWSWIRE) – CNL Healthcare Properties, a real estate investment trust (REIT) focused on senior housing, has announced that its board of directors has unanimously approved a net asset value estimate (NAV) per share of $ 7.81 as at December 31, 2019. The previous estimated net asset value per share of the REIT, as at December 31, 2018, has been updated to $ 7.99 following a special distribution of $ 2.00 per share to shareholders in May 2019.
The estimated net asset value reflects the reduction in real estate assets following the sale of 61 properties by the Company in calendar year 2019, and a reduction in the fair market value of debt resulting from significantly reduced borrowing levels. . Compared to the previous updated net asset value, the appraised value of the Company’s 71 senior housing assets, one parcel of land and two specialty hospitals as of December 31, 2019, has decreased by approximately 2.0%. This value adjustment is the result of the increase in the capitalization rate and slightly lower estimates of earnings growth, both of which had a negative impact on net asset value. The calculation of the net asset value continues to include a deduction for estimated transaction costs related to a hypothetical sale of the remaining assets of CNL Healthcare Properties, as the company publicly announced its study and search for strategic alternatives to provide liquidity to customers. shareholders.
âWe are delighted to have made real and tangible progress in actively providing liquidity to shareholders over the past year. From April 2019 to March 2020, the company successfully sold a total of 68 assets through six different transactions, provided significant special distribution to shareholders, and strategically strengthened the health and strength of the company’s liquidity and balance sheet. We believe the decline in estimated net asset value per share reflects the overall market forces that persisted through much of 2019, particularly in the senior housing sector, âsaid Stephen H. Mauldin, President and CEO of the management of CNL Healthcare Properties. âFaced with what is now an unprecedented current health, operational and economic environment caused by the COVID-19 pandemic, we maintain great confidence in the positive long-term prospects of our portfolio which, today, consists mainly of new, well-positioned, privately-paid senior housing communities.
The valuation was performed by Robert A. Stanger & Co. Inc (Stanger), an independent third-party valuation firm, in accordance with the firm’s valuation policy and guidelines established by the Institute for Portfolio Alternatives, the main business organization. Stanger provided CNL Healthcare Properties with a net asset value of between $ 7.39 and $ 8.26 per share. The valuation committee, composed exclusively of independent directors, unanimously recommended $ 7.81 as the estimated net asset value per share, and the recommendation was unanimously adopted by the board of directors.
About CNL Healthcare Properties
CNL Healthcare Properties, Inc., is a real estate investment trust (REIT) that focuses on quality institutional properties in the senior housing sectors, including stabilized development, value-added and construction 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.