CNL Healthcare Properties, a publicly registered non-traded real estate investment trust, has issued a letter to its stockholders to provide an COVID-related update on its senior housing properties and financial condition.
Since March and the onset of the pandemic, the REIT’s managed seniors housing portfolio has experienced a 4.2 percent overall decline in unit occupancy resulting in a portfolio-wide trailing 3-month average occupancy rate of approximately 82.9 percent as of August. As of September 22nd, 69 of the 71 communities are open to admitting new residents and move-ins.
The company has approximately $250.7 million in cash, cash equivalents and available capacity under its corporate line of credit facility. The REIT noted that this equates to almost 3.6 times the annual corporate operating expenses and debt service obligations based on annualized 2020 second quarter results.
“We are pleased to report that we are one of a handful healthcare-related REITs that has not reduced its dividend level in 2020,” the letter stated. “Naturally…we must continue to closely monitor and assess distribution levels for the fourth quarter and beyond based on our actual and forward-looking operational and financial performance of the portfolio and company.”
The company indicated that while its previously announced exploration of strategic alternatives remains on hold, it plans to “actively scan the industry and environment to identify thoughtful opportunities.”
CNL Healthcare Properties closed its offering in September 2015 after raising more than $1.7 billion in investor equity. The company’s multi-billion-dollar real estate portfolio consisted of interests in 74 properties, including 71 senior housing communities, one vacant land parcel and two acute care hospitals classified as held for sale.