CNL Healthcare Properties Inc., a non-traded real estate investment trust that focuses on senior housing and other healthcare-related real estate, is closing its current public offering of common stock, terminating its stock distributions and issuing changes to its dividend reinvestment plan, as of September 30, 2015.
CNL Healthcare Properties announced earlier this year that they would continue to sell shares throughout 2015, with an anticipated closing on or before the last day of the year. According to a letter issued to shareholders, the decision was based on an evaluation of the offering status, which included the current and projected capital raise and their identified capital deployment opportunities.
The company is terminating its current stock distribution of 0.0025 shares of common stock declared monthly to stockholders, and the stock distributions declared for July, August and September will be issued on or about September 15, 2015.
Although no further stock distributions will be declared or issued, the company said the monthly cash distribution of $0.0353 per share will remain unchanged at this time.
An amended dividend reinvestment plan, effective October 1, 2015, will provide that all shares issued under the plan be purchased at a price equal to the current estimated net asset value per share at the time of reinvestment, rather than at a discount to the purchase offer price or market price per share.
CNL Healthcare Properties intends to conduct a net asset valuation of its portfolio as of December 31, 2015 and will announce any change in NAV upon its completion.
The company noted that they will focus on fully investing the remaining equity proceeds, completing construction and expansion projects, leasing-up and stabilizing the existing development and value-add components of their portfolio and continuing to actively manage and drive performance of their assets.
CNL Healthcare Properties was launched in 2011 and manages a portfolio of 108 properties representing a total investment value of approximately $2.2 billion. As of March 31, 2015, the company had raised $1.3 billion in investor equity via multiple public offerings.