CNL Healthcare Properties II ‘s $10.06 NAV On Track with CNL Healthcare Properties’ NAVs
April 14, 2018 | James Sprow | Blue Vault
When the board of directors of CNL Healthcare Properties II announced the estimated NAV per share for all share classes as of December 31, 2017, at $10.06, it followed a pattern in NAV appreciation observed earlier with CNL Healthcare Properties, Inc.
CNL Healthcare Properties II ‘s estimated NAV as of June 30, 2017, was $10.00, based on approximately 1.63 million shares outstanding as of that date. The December 31, 2017, estimated NAV of $10.06 was based on approximately 3.07 million shares outstanding at that date. The December 31, 2017, estimated NAV was determined by the board at a special meeting held on March 14, 2018.
In an 8-K filed with the SEC on April 13, CNL recaps the financial history of the closed healthcare REIT, CNL Healthcare Properties, Inc. The estimated NAVs per share for that REIT increased from December 31, 2015, at $9.75 to December 31, 2016’s $10.04 and December 31, 2017’s $10.32.
In the CNL Healthcare Properties II announcement, the board stated:
“The price per share for each class of common stock in the current offering will be $10.99 for Class A shares, $10.56 for Class T shares, and $10.06 for Class I shares, based on the estimated NAV and as approved by the board of directors. The public offering prices are effective after the close of business on March 15, 2018. The updated estimated NAV per share will be reflected on shareholders’ second quarter statements.”
The board also stated:
“On March 29, 2018, the price for the repurchase of shares under the Redemption Plan and the price for sales of shares under the Distribution Reinvestment Plan will be equal to $10.06 per share for each class, as applicable. Any price change will be reflected in the reinvestment of shareholders’ second quarter distributions, once approved by the board of directors, estimated to be paid on or about June 7, 2018.”
“Monthly cash distributions remain unchanged at $0.0480 per share for all share classes, less class-specific expenses, and monthly stock dividends remain unchanged at 0.00100625 shares on each outstanding share of common stock for all share classes.”
Blue Vault’s Q4 2017 preliminary report for CNL Healthcare Properties II, Inc. shows:
As of December 31, 2017, the healthcare investment portfolio consisted of interests in one seniors housing property and one medical office building (“MOB.”) The seniors housing property, Summer Vista Assisted Living, is operated under a RIDEA structure pursuant to a property management agreement with SRI Management, LLC, which represents the only RIDEA operator as of December 31, 2017. The MOB, Mid America Surgery Institute, consisted of five tenants with the largest tenant, Mid America Surgery Institute, accounting for 50.6% of total rentable square feet.
Based upon the original share prices the annualized distribution yield for Q4 2017 is 5.27%, 4.49%, and 5.26% for Class A, Class T, and Class I respectively.
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