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.1 Launched in 2016, CNL Healthcare Properties II is a non-traded real estate investment trust (REIT) that seeks to provide income and long-term growth.2
With a strategic focus on seniors housing and healthcare real estate, this non-traded REIT offers the:
- Access to 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.3
- Benefits of CNL's more than 15 years of experience investing approximately $8.5 billion in these two sectors.1,4
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 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.
2 CNL Healthcare Properties II elected to be taxed as a REIT beginning with the year ended Dec. 31, 2017.
3 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 eight months ended Aug. 31, 2019, approximately 60 percent of distributions were covered by operating cash flow as defined by GAAP and approximately 40 percent were covered by financing activities. For the years ended Dec. 31, 2018, 2017 and 2016, approximately 21, 30 and 0 percent of distributions were covered by operating cash flow and 79, 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.
4 As of Sept. 30, 2019, CNL's total seniors housing and healthcare real estate investment is $8 billion of the approximately $8.5 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.