A Healthcare REIT Built on Experience
With an established track record in the seniors housing and healthcare real estate markets, CNL Financial Group (CNL) is an experienced sponsor that has longstanding relationships with leading industry operators.2 Launched in 2016, CNL Healthcare Properties II is a non-traded real estate investment trust (REIT) that builds on CNL's expertise to help investors who are seeking income and long-term growth capitalize on several large scale-trends playing out in the United States in the coming decades.3
With a strategic focus on seniors housing and healthcare real estate, this non-traded REIT offers the:
- Opportunity to invest in a durable asset class with strong growth potential.
- Potential for income through quarterly distributions. Please note: Initial distributions will not be fully covered by cash flows from operating activities and will be paid from expense waivers, borrowings and offering proceeds.4
- Benefits of CNL's more than 15 years of experience investing approximately $8.4 billion in these two sectors.2,5
Investors must review the fees and expenses in the prospectus as there are substantial costs and risks associated with this offering.
While the majority of CNL REITs produced positive returns, some prior programs have been adversely affected by general economic conditions and other external factors. There is no assurance the stated objectives will be met.
1 This photograph is representative of the types of properties CNL Healthcare Properties II intends to develop or acquire.
2 CNL Healthcare Properties II has a limited operating history. The prior performance of real estate programs sponsored by CNL may not be indicative of the future results of CNL Healthcare Properties II. During select periods, some REIT programs sponsored by CNL had a backlog of redemption requests that were unfulfilled and experienced net operating losses. In addition, two REITs have taken impairment charges on certain properties. During and after the global financial crisis in 2008, some REITs experienced declining performance which impacted the REITs' valuation.
3 CNL Healthcare Properties II intends to qualify and may elect REIT tax status beginning with the taxable year ending Dec. 31, 2017 or the first year of material operations.
4 There is no guarantee of future distributions or that distributions will be paid at all. Due to the high levels of investment costs and fees incurred during the REIT's initial phase, distributions will not be fully covered by cash flows from operating activities and will be paid from expense waivers, borrowings and offering proceeds. For the three months ended March 31, 2018, approximately 39 percent of cash distributions were covered by operating cash flow and 61 percent were funded by offering proceeds. For the years ended Dec. 31, 2017 and 2016, approximately 30 and 0 percent of distributions were covered by operating cash flow and 70 and 100 percent were funded by offering proceeds, respectively. Distributions paid from sources other than operating cash flow, now and in the future, are not sustainable, can reduce investors’ overall return and may be dilutive.
5 As of March 31, 2018, CNL's total seniors housing and healthcare real estate investment is approximately $7.93 billion of the approximately $8.38 billion collective real estate investment of CNL and its joint venture partners. Data derived from market value of liquidated assets and assets still held by CNL and/or its affiliates.