| • | | The estimated NAV is a snapshot in time and not indicative of value the company or its shareholders may receive now or in the future. Please review the company’s latest financial filings for more details on performance metrics. |
| • | | Stanger assisted the valuation committee with the preparation of the estimated NAV per share of its common stock as of Dec. 31, 2018. Other than the adjustment for estimated property transaction costs, the estimated NAV per share was determined in accordance with the company’s valuation policy and certain methodologies of The Institute of Portfolio Alternatives (IPA), a trade association fornon-listed direct investment vehicles, in IPA Practice Guideline2013-01 “Valuations of Publicly RegisteredNon-Traded REITs.” 3 |
| • | | The company will mail this letter to shareholders on or about March 21, 2019 and hold a valuation webinar on March 21, 2019, at 1:30 p.m. EST to discuss the valuation results.Register for the webinar and dial866-660-6626 to listen. A replay of the webinar and the accompanying slide presentation will be available within 48 hours oncnlhealthcareproperties.com |
For additional information, please read the Form8-K filed March 19, 2019, contact your sales representative directly or call CNL Client Services at866-650-0650, option 2.
1 The estimated NAV per share is only an estimate and is based on several assumptions and estimates that may not be correct. The NAV is based on numerous assumptions and estimates with respect to industry, business, economic and regulatory conditions, all of which are subject to changes. Throughout the valuation process, the valuation committee, the company’s advisor and senior members of management reviewed, confirmed and approved the processes and methodologies and their consistency with real estate industry standards and best practices.
2 Distributions are not guaranteed in frequency or amount. Distributions have been and may in the future be paid by borrowings, shareholder proceeds and income. For the nine months ended Sept. 30, 2018, approximately 86 percent of cash distributions were covered by operating cash flow and 14 percent were funded by other sources, which could include borrowings and/or proceeds from the Distribution Reinvestment Plan. The REIT’s distribution is subsidized by expense waivers that will be reimbursed to the advisor in the form of restricted stock. For the years ended Dec. 31, 2017, 2016, 2015, 2014 and 2013, approximately 91, 94, 45, 34 and 13 percent, respectively, of total distributions were covered by operating cash flow and approximately 6, 55, 66 and 87 percent, respectively, were funded by offering proceeds. For the years ended Dec. 31, 2012 and 2011, the REIT’s first two years of operations, distributions were not covered by operating cash flow and were 100 percent funded by offering proceeds.
3 There is no assurance that CNL Healthcare Properties’ adherence to any of the methodologies set forth in IPA Practice Guideline2013-01 satisfies applicable compliance or other requirements of theSEC,FINRA or under ERISA with respect to the preparation and disclosure of its estimated NAV per share.
FOR BROKER-DEALER AND RIA USE ONLY. Not for general use with the public.See SEC filing for complete details. This information is derived from the issuer’s public filings and does not replace or supersede any information provided therein.
Forward-looking statements are based on current expectations and may be identified by words such asbelieves, anticipates, expects, may, couldand terms of similar substance, and speak only as of the date made. Actual results could differ materially due to risks and uncertainties that are beyond the company’s ability to control or accurately predict, including the amount and timing of anticipated future distributions, estimated per share net asset value of the company’s stock and/or other matters. The company’s forward-looking statements are not guarantees of future performance. Shareholders and financial advisors should not place undue reliance on forward-looking statements.