The board of CNL Healthcare Properties, a publicly registered non-traded real estate investment trust, approved an estimated net asset value per share of $10.32 as of December 31, 2017. The company will hold a webinar to discuss the estimated NAV on Wednesday, February 14 at 1:30 p.m. Eastern Standard Time.
The current valuation includes deductions for estimated transaction costs and fees that would be payable in a hypothetical liquidity event. Last year’s NAV was $10.04 and did not include these deductions.
“We have built a high quality and high performing seniors housing and healthcare portfolio, and we believe the increase in our NAV for the fourth consecutive year further confirms that,” said Stephen Mauldin, president and CEO of CNL Healthcare Properties. “This year, we will continue to focus on further driving and enhancing value for shareholders, plus we expect to begin to turn our attention toward the exploration of strategic alternatives to ultimately promote shareholder liquidity. This intent is reflected in the inclusion of estimated transaction costs in this year’s NAV.”
The company engaged independent investment banking firm CBRE Capital Advisors Inc. to conduct the valuation. The valuation committee, comprised exclusively of independent board members, directed and reviewed the valuation process and recommended an estimated net asset value per share of $10.32 was unanimously approved by the full board of directors.
The estimated NAV per share represents the midpoint in the range of values, $9.79 to $10.81, provided by CBRE Cap.
The 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.
The valuation process was completed in compliance with the company’s valuation policy and certain methodologies promoted by the Investment Program Association, a trade association for non-listed investment products.
The company will hold a webinar to discuss the NAV results on Wednesday, February 14, at 1:30 p.m. EST. To register, visit cnlhealthcareproperties.com/webinar and dial 866-660-6626. A replay and the accompanying slide presentation will be available on the company’s website 48 hours following the completion of the presentation.
CNL Healthcare Properties real estate portfolio includes 72 seniors housing communities, 54 medical office buildings, 12 post-acute care facilities and five acute-care hospitals. The appraised value of the company’s real estate assets was $3.5 billion, as of December 31, 2017.
CNL Healthcare Properties focuses on acquiring properties in the seniors housing and healthcare sectors, including stabilized, value-add and development assets, as well as other income-producing properties, real-estate related securities and loans. The company closed its offering in September 2015 after raising more than $1.7 billion in investor equity, according to Summit Investment Research. CNL Financial Group LLC is the sponsor of CNL Healthcare Properties.