Exhibit 99.1
May 19, 2020
Dear Shareholder,
We hope you and your family are safe and well. We are navigating uncertain times as the COVID-19 pandemic continues to exhibit far-reaching impacts. While the Cole Credit Property Trust V, Inc. (“CCPT V”) portfolio will not escape the effects of the economic slowdown caused by COVID-19, we believe CCPT V is well-positioned to maintain strength through the storm.
In 2019, CCPT V acquired 14 single-tenant retail properties leased to quality tenants including Steinhafels Furniture, Duluth Trading Company and Take 5 Oil Change. CCPT V also sold six single-tenant retail properties and one anchored shopping center for $39.2 million in proceeds.
While we are proud of our work in 2019, our focus is on managing CCPT V effectively through the COVID-19 pandemic. We will be communicating with shareholders regularly in the coming months regarding these key initiatives.
| Recent Actions in Response to COVID-19 | |
Liquidity & Financing » Our approach to financing is to maintain relatively low levels of leverage, utilizing unsecured financing where possible, and maximizing the tenor of outstanding debt. CCPT V had a net leverage ratio of approximately 51.2% as of March 31, 2020 and benefitted from cash and available capacity on its revolving credit facility of approximately $28 million as of April 30, 2020. » In an effort to position CCPT V for long-term success, we are exploring opportunities to increase CCPT V’s scale, as we believe larger companies will have a significant advantage as they navigate through and after the crisis. Tenant Rent Collection & Support » In April, CCPT V received approximately 71% of base rent due from its tenants. In most cases where April rent has not been paid, CCPT V has offered tenants temporary rent deferrals subject to further negotiation. We are working closely with tenants to address needs for rent relief, evaluating requests on a case-by-case basis. » We moved rapidly to provide tenants requesting rent relief with information on government assistance programs. CIM is uniquely positioned to support tenants through its affiliate lender, which offers Paycheck Protection Program loans. Cash Flow Management » During this period of disruption, we will determine the timing and amount of distributions on a monthly instead of a | quarterly basis, considering the monthly cash flow generated by CCPT V’s operations and other available liquidity. » We were pleased to declare a distribution for April 2020, albeit at the reduced monthly rate of $0.02 per share (less, in the case of Class T shares, the per share distribution and shareholder servicing fees that are payable with respect to the Class T shares), which is approximately 20% of the most recent monthly distribution rate. » Additionally, on May 1, 2020, we announced that the Board amended CCPT V’s share redemption program and distribution reinvestment plan so that either plan may be suspended by the Board without delay at any time if the Board believes the action to be in the best interests of CCPT V and its shareholders, allowing us to react quickly to changing economic circumstances. Valuation Timing » We believe it is appropriate to value CCPT V’s assets on a quarterly instead of annual basis during this time to help ensure that CCPT V’s share redemption program and distribution reinvestment plan are based on current values. We have engaged a third-party valuation firm to assess the value of CCPT V’s assets and liabilities quarterly until economic conditions stabilize. |
While the full effects of the pandemic are unclear, we are committed to leaving no stone unturned managing CCPT V in a manner that will provide the greatest benefit to you, our valued shareholders. Shareholders can view all of CCPT V's communications and other disclosures that have been filed with the SEC by visiting www.cimgroup.com and clicking on “Investment Strategies,” then “Managed REIT Corporate Governance”. If you have any questions, please contact your financial advisor or the CIM Shareholder Relations team at 866.907.2653. We wish good health and safety for you and your family.
Sincerely,
 | Avraham Shemesh Chairman of the Board of Directors, Chief Executive Officer and President Cole Credit Property Trust V, Inc. Co-Founder and Principal, CIM Group |
CIM GROUP 2398 EAST CAMELBACK ROAD, 4TH FLOOR, PHOENIX ARIZONA 85016 PH 866.341.2653 FX 602.801.2736 CIMGROUP.COM
SECURITIES DISTRIBUTED BY AFFILIATE BROKER - DEALER : CCO CAPITAL , LLC , MEMBER FINRA / SIPC