Comrit Offers $4.66 per Share for CNL Healthcare Properties Common Shares
August 6, 2020 | James Sprow | Blue Vault
Comrit Investments 1 LP, an Israel-based company, has offered $4.66 per share for up to 9,000,000 outstanding shares of common stock of CNL Healthcare Properties, Inc., a nontraded REIT. The third-party tender offer expires on September 18, 2020.
After a special distribution in Q2 2019, the net asset value of the CNL Healthcare Properties common shares was $7.81.
From the Q1 2020 NTR Review:
The Company paid a special distribution of $2.00 per share to shareholders of record as of May 22, 2019. The special distribution was funded by the sale of 55 assets to Welltower Inc. on May 15, 2019, for $1.25 billion.
On March 23, 2020, the Company announced an updated NAV per share of $7.81 as of December 31, 2019, down from the previously announced NAV per share of $7.99 as of June 30, 2019.
As part of executing under the Possible Strategic Alternatives, during 2019 the Company completed the sale of 61 of the 70 properties that it had previously classified as held for sale. During the three months ended March 31, 2020, the Company sold seven additional properties for a total sales price of $83.7 million.
As a result of the sale of 59 properties from the IRF Sale and the MOB Sale, the board of directors adjusted (effective Q2 2019) the regular quarterly cash distribution to an amount equal to $0.0512 per share, compared to $0.1164 per share in effect since the third quarter of 2017. The adjustment to the regular cash distributions was the result of a reduction in the remaining earnings base and operating cash flows given the associated impact of the sale of real estate.
Sources: SEC, Blue Vault
