The board of CNL Healthcare Properties II, a publicly registered non-traded real estate investment trust, approved an estimated net asset value per share of $10.06 for all share classes as of December 31, 2017. This is the second voluntary valuation conducted by the company.
The public offering price 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.
CNL Healthcare Properties II was not required to declare a valuation until June 30, 2018, however the most recent valuation was conducted to align with the recommendation of the Investment Program Association to estimate the NAV per share as of calendar year-end.
“Our second NAV was positively impacted by a number of factors, including the continued strong performance of our seniors housing property and the acquisition of the Mid-America Surgery Center in December,” said Stephen Mauldin, chairman, president and CEO of CNL Healthcare Properties II.
He added, “The valuation both reflects the high quality of our investments early in the company’s life, as well as the unmatched financial support that our advisor is providing to the company and our shareholders through the waiver or subordination of significant amounts of fees and expenses.”
The company engaged CBRE Capital Advisors, Inc. (CBRE Cap), an independent investment banking firm, to conduct the valuation. The valuation committee, comprised exclusively of independent board members, directed and reviewed the valuation process and recommended an estimated NAV per share of $10.06, which is at the midpoint of the range of values provided by CBRE Cap. The recommendation was unanimously approved by the full board of directors.
The estimated NAV is based on the estimated value of the company’s assets minus the estimated value of its liabilities divided by the approximate number of shares outstanding on a fully diluted basis, calculated as of December 31, 2017.
CNL Healthcare Properties II expects to update its estimated NAV at least annually.
CNL Healthcare Properties II commenced its $1.75 billion initial public offering in March 2016 and raised $31.4 million in investor equity as of the fourth quarter 2017. The company invests in senior housing, medical office, acute care and post-acute care properties, and oversees a portfolio of two properties purchased for $35.4 million.