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CNL Healthcare REIT Decreases NAV Per Share

CNL Healthcare Properties Inc., a publicly registered non-traded real estate investment trust focused on senior housing, announced that its board of directors unanimously approved an estimated net asset value per share of $6.92 as of Dec. 31, 2022.

The company’s previous estimated NAV was $7.37 per share as of Dec. 31, 2021.

CNL says the decrease in the company’s 2022 NAV of $0.45 per share as compared to the 2021 NAV was “generally driven by disrupted economic and transaction environments including persisting inflationary pressures, a meaningfully higher debt interest rate environment and a tighter lending environment and higher discount rates applied to future cash flows.”

CNL also decreased their NAV last year by $0.01 from $7.38 in 2020 to $7.37 in 2021.

As the company has done since 2018, CNL says the estimated NAV includes a deduction for CNL Healthcare Properties’ current projection of estimated transaction costs in a “hypothetical” orderly disposition of the company’s real estate portfolio.

“We experienced positive and encouraging occupancy and rental rate momentum during 2022, while impacts of the COVID-19 pandemic on the seniors housing industry persisted. Specifically, our operators and properties continue to face the lingering effects of elevated staffing costs and increased operating expenses due to inflation. These challenges are reflected in our most recent NAV,” Stephen H. Mauldin, president and chief executive officer of CNL Healthcare Properties, said. “We remain optimistic about the future of the needs-based seniors housing industry and our national portfolio as we believe we are on the path to expanding occupancy and operating margins further, from pandemic-driven low watermarks.”

Robert A. Stanger & Co. Inc., a third-party valuation firm, assisted with the valuation process and provided a range of values ($6.57 to $7.30 per share), with an approximate midpoint of $6.92 per share.

As The DI Wire previously reported, CNL’s chief operating officer and senior vice president John Starr resigned, effective July 22, 2022.

CNL Healthcare Properties closed its offering in September 2015 after raising more than $1.7 billion in investor equity. The company’s real estate portfolio consists of interests in 70 properties, including 69 senior housing communities and one vacant land parcel.

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