CNL Healthcare Properties — Investor Presentation (March 2024)
21 slides from CNL Healthcare Properties's investor presentation, Mar 14, 2024
Slide 1: Estimated Net Asset Value Presentation March 2024
Estimated Net Asset Value Presentation March 2024 Exhibit 99.1
Slide 2: General Notices
General Notices This is not an offer to sell nor a solicitation of an offer to buy shares of the company. This presentation is for general information purposes only and does not constitute legal, tax, investment or other professional advice on any subject matter. Information provided is not all-incl
Slide 3: General Notices
General Notices Although the company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, the company’s actual results could differ materially from those set forth in the forward-looking statements due to a variety of risks, uncertainties
Slide 4: Risk Factors
Risk Factors Investing in a non-traded real estate investment trust (REIT) is a higher-risk, longer term investment and is not suitable for all investors. Due to the risks involved in the ownership of real estate, there is no guarantee of any return on investment. The shares may lose value or invest
Slide 5: Risk Factors
Risk Factors The company relies on its advisor and the advisor’s affiliates to conduct operations. The company is obligated to pay substantial fees to its advisor and its affiliates based upon agreements which have not been negotiated at arm’s length. These fees could influence their advice and judg
Slide 6: Net asset value (NAV) definition and cautions
Net asset value (NAV) means the fair value of real estate, real estate-related investments and all other assets less the fair value of total liabilities. Our estimated NAV per share is based upon subjective judgments, assumptions and opinions, which may or may not turn out to be correct. You should
Slide 7: Welcome, Business Update, Estimated Net Asset Valuation, Next Steps
Welcome Business Update Estimated Net Asset Valuation Next Steps
Slide 8: Business Update - 2023 Highlights
Business Update - 2023 Highlights
Slide 9: Business Update
Business Update Data as of Dec. 31, 2023, unless otherwise noted. 1 Based on total seniors housing managed portfolio revenue. 2 Since announcing strategic alternatives in mid-2018. Total Investment $1.74B Leverage 31.0% Average Effective Community Age 14.7 years Number of States 26 Dispositions2 73
Slide 10: Estimated Net Asset Value (NAV) Result
Estimated Net Asset Value (NAV) Result Dec. 31, 2023, Estimated NAV $6.28 per share Represents a decline of $0.64 per share or 9.25% Aggregate appraised value of comparable real estate properties declined $92.16 million (-5.22%) compared to 2022
Slide 11: Historical Estimated Net Asset Value Recap
Offering closed to new investors Special distribution $2.00/share Historical Estimated Net Asset Value Recap This valuation has been determined with the assistance of a third party, which is aligned to be in accordance with IPA guidelines. The IPA is a trade industry organization. There is no assura
Slide 12: Estimated NAV Process
Estimated NAV Process 1 There is no assurance that IPA Guidelines are acceptable to FINRA or under ERISA for compliance with valuation or reporting requirements. Please see the Form 8-K for complete details. Consistent with IPA guidelines1 & company valuation policy Included estimated transaction co
Slide 13: Methodology & Assumptions
Methodology & Assumptions Discounted cash flow analysis and/or a direct capitalization analysis (except for the land) Adjusted values for excess land, deferred maintenance or capital needs and lease-up costs Adjusted for company and JV interests Appraised Assets Cash, Other Tangible Assets & Liabili
Slide 14: Discount and Capitalization Rates
Discount and Capitalization Rates 1 The weighted average capitalization rate, discount rates and terminal capitalization rates are weighted on stabilized net operating income. The weighted average YoY change is based on the comparable set of properties from the prior year. Range Min Max Weighted Avg
Slide 15: 8-K Sensitivity
8-K Sensitivity 5% Decrease NAV midpoint by $0.54 per share 5% Increase NAV midpoint by $0.51 per share Impact of 5% or 5% on capitalization rates, discount rates and land price PSF
Slide 16: Valuation Range and Midpoint
Stanger varied the discount rate, terminal cap rates and direct capitalization rates, by 25 bps in either direction Valuation Range and Midpoint The estimated NAV is based upon assumptions and estimates believed to be accurate as of Dec. 31, 2023. Data is subject to change. Please see the Form 8-K f
Slide 17: Estimated NAV Per Share Build-Up
Estimated NAV Per Share Build-Up 1 Includes restricted cash and reflects approximately $25.3 million in principal payments and approximately $14.2 million of non-recurring financing costs. 2 Reflects payoff of one secured debt obligation. 3 Reflects a hypothetical orderly sale of the company’s asset
Slide 18: Financial Health
Financial Health There is no assurance these objectives will be met. Forward-looking statements are based on current expectations and may be identified by words such as “believes,” “expects,” “may,” “could” and terms of similar substance, and speak only as of the date made. Actual results could diff
Slide 19: Seniors Housing Sector
Seniors Housing Sector All Markets – Seniors Housing | Profit | Quarterly | 4Q20233 Source: 1 Organization for Economic Co-Operation and Development and NIC MAPÒ Data as of 1Q23 2 Welltower Business Update, February 2024– Sourced from NIC MAPÒ Data 3 NIC MAPÒ Data as of 4Q23; All markets; For profit
Slide 20: What's Next?
Continue to maximize property-level cash flows and operating performance1 Maintain financial flexibility and balance sheet strength, and ample liquidity Pursue ultimate shareholder liquidity as the economic environment allows What’s Next?1 There is no assurance these objectives will be met. Forward-
Slide 21: Investors
Investors Please consult your financial professional or visit cnlhealthcareproperties.com. Financial Professionals Please contact our managing dealer, CNL Securities, member FINRA/SIPC at 866-650-0650 or visit cnlsecurities.com
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