CNL Healthcare Evaluates Strategic Alternatives
The REIT is considering listing its common stock, selling itself or a merger.
ORLANDO, FLA–CNL Healthcare Properties, a non-traded REIT that focuses on seniors housing and healthcare facilities, has appointed a special committee of its independent board members to evaluate strategic alternatives.
Among its options, the REIT is considering listing its common stock, selling itself or merging with another company.
The special committee has engaged HFF Securities and KeyBanc Capital Markets to act as strategic financial advisors in this process.
This potential direction was hinted at earlier this year when the REIT announced it had an estimated net asset value per share (NAV) of $10.32 as of Dec. 31, 2017. The valuation included deductions for estimated transaction costs and fees that would be payable in a hypothetical liquidity event. The REIT’s previous NAV, as of Dec. 31, 2016, was $10.04 and did not include these deductions.
Last September the REIT reported that its same-store net operating income across the portfolio rose 8.3% during the quarter ended June 30, 2017, as compared to the quarter ended June 30, 2016, increasing by approximately $6.6 million as compared to the same period in the prior year.
CNL Healthcare Properties’ real estate portfolio spans 34 states and includes 72 seniors housing communities, 53 medical office buildings, 12 post-acute care facilities and five acute-care assets, as of May 2018. The REIT was launched in 2011 and made its first investment in early 2012.