CNL Lifestyle Properties Inc., a public registered non-traded real estate investment trust, authorized a $422.7 million, or $1.30 per share, special cash distribution. The distribution is payable to the company’s stockholders of as of the close of business on December 4th, and will be paid on or around December 10th.
According to a filing with the Securities and Exchange Commission, the special distribution will be funded from the net proceeds of earlier property dispositions and other recently sold assets.
A significant portion of the net sales proceeds from the year’s asset sales was used to retire more than $681 million in debt, including its corporate senior unsecured notes. As a result of debt repayments, the company’s current leverage ratio, or total debt to total assets, was 11.6 percent, as of September 30, 2015.
In the last two months, the REIT sold CoCo Key Water Resort for approximately $15.1 million; Great Wolf Lodges for approximately $62 million; and The Omni Mount Washington Resort and Bretton Woods Ski Area for approximately $90.5 million. The company indicated that the collective sales of the three properties will result in reductions to cash flows from operations, funds from operations and modified funds from operations.
In other CNL Lifestyle Properties news, the company engaged CBRE Capital Advisors to assist the board of directors and valuation committee in determining a 2015 net asset value. The process is expected to be completed in the first quarter of 2016.
CNL Lifestyle Properties owns a diversified portfolio of 49 assets based on a lifestyle-oriented, demographically-driven investment approach.
CNL Financial Group, the sponsor of CNL Lifestyle Properties, is a private investment management firm providing global real estate and alternative investments. Since its inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $31 billion in assets.