Company Quick10K Filing
Quick10K
CNL Healthcare Properties
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-08-27 Regulation FD, Other Events, Exhibits
8-K 2019-05-21 Regulation FD, Other Events, Exhibits
8-K 2019-05-15 Enter Agreement, M&A, Off-BS Arrangement, Regulation FD, Exhibits
8-K 2019-03-21 Regulation FD, Exhibits
8-K 2019-03-13 Regulation FD, Other Events, Exhibits
8-K 2019-01-24 Regulation FD, Other Events, Exhibits
8-K 2019-01-24 Regulation FD, Other Events, Exhibits
8-K 2018-12-27 Enter Agreement, Regulation FD, Exhibits
8-K 2018-12-18 Shareholder Vote
8-K 2018-06-22 Other Events, Exhibits
8-K 2018-04-03 Leave Agreement
8-K 2018-02-27 Officers
8-K 2018-02-14 Regulation FD, Exhibits
8-K 2018-02-07 Regulation FD, Other Events, Exhibits
8-K 2018-01-30 Officers
8-K 2018-01-23 Regulation FD, Other Events, Exhibits
IEHC Iehoration 44
LTUM Lithium 8
OZSC Ozop Surgical 1
TRCC Texas Republic Capital 0
CSGN Chase General 0
VDI Vantage Drilling International 0
SRTR Strategic Realty Trust 0
NTWN Newtown Lane Marketing 0
RBOI Results Based Outsourcing 0
LBAO Luboa Group 0
CHP 2019-06-30
Item 1. Condensed Consolidated Financial Information
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risks
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities - None
Item 4. Mine Safety Disclosure - Not Applicable
Item 5. Other Information - None
Item 6. Exhibits
EX-31.1 chp-ex311_7.htm
EX-31.2 chp-ex312_6.htm
EX-32.1 chp-ex321_8.htm

CNL Healthcare Properties Earnings 2019-06-30

CHP 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 chp-10q_20190630.htm 10-Q chp-10q_20190630.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number:  000-54685

 

CNL Healthcare Properties, Inc.

(Exact name of registrant as specified in its charter)

  

Maryland

 

27-2876363

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

CNL Center at City Commons
450 South Orange Avenue
Orlando, Florida

 



32801

(Address of principal executive offices)

 

(Zip Code)

 

 

 

Registrant’s telephone number, including area code (407) 650-1000

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes     No 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes     No

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

Title of each class

Trading

Symbol(s)

 

Name of each exchange on which registered

None

N/A

N/A

 

The number of shares of common stock of the registrant outstanding as of July 31, 2019 was 173,963,445.

 

 


 

CNL HEALTHCARE PROPERTIES, INC. AND SUBSIDIARIES

 

INDEX

 

 

 

Page

PART I. FINANCIAL INFORMATION

 

 

 

 

Item 1.

Condensed Consolidated Financial Information (unaudited):

2

 

Condensed Consolidated Balance Sheets

2

 

Condensed Consolidated Statements of Operations

3

 

Condensed Consolidated Statements of Comprehensive Income (Loss)

4

 

Condensed Consolidated Statements of Stockholders’ Equity and Redeemable Noncontrolling Interest

5

 

Condensed Consolidated Statements of Cash Flows

7

 

Notes to Condensed Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

24

Item 3.

Quantitative and Qualitative Disclosures about Market Risks

42

Item 4.

Controls and Procedures

42

 

 

 

PART II. OTHER INFORMATION

43

 

 

 

Item 1.

Legal Proceedings

43

Item 1A.

Risk Factors

43

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

43

Item 3.

Defaults Upon Senior Securities

43

Item 4.

Mine Safety Disclosures

43

Item 5.

Other Information

43

Item 6.

Exhibits

43

 

 

 

Exhibit Index

44

Signatures

45

 

 

 

 

 


 

Item 1. Condensed Consolidated Financial Information

 

CNL HEALTHCARE PROPERTIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except per share data)

 

 

 

June 30,

 

 

December 31,

 

ASSETS

 

2019

 

 

2018

 

Real estate investment properties, net (including VIEs $143,577 and $146,341, respectively)

 

$

1,432,298

 

 

$

1,455,149

 

Assets held for sale, net (including VIEs $0 and $39,601, respectively)

 

 

146,806

 

 

 

1,147,645

 

Cash (including VIEs $523 and $342, respectively)

 

 

52,605

 

 

 

57,109

 

Other assets (including VIEs $515 and $678, respectively)

 

 

25,607

 

 

 

23,488

 

Deferred rent and lease incentives (including VIEs $7,961 and $7,160, respectively)

 

 

15,458

 

 

 

14,763

 

Restricted cash (including VIEs $541 and $208, respectively)

 

 

7,921

 

 

 

6,119

 

Intangibles, net

 

 

1,417

 

 

 

1,614

 

Total assets

 

$

1,682,112

 

 

$

2,705,887

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgages and other notes payable, net (including VIEs $81,423 and $102,578, respectively)

 

$

477,184

 

 

$

530,644

 

Credit facilities

 

 

262,714

 

 

 

425,613

 

Liabilities associated with assets held for sale (including VIEs $0 and $30,695, respectively)

 

 

872

 

 

 

774,019

 

Accounts payable and accrued liabilities (including VIEs $1,122 and $784, respectively)

 

 

23,433

 

 

 

21,882

 

Other liabilities (including VIEs $932 and $1,321, respectively)

 

 

9,964

 

 

 

8,548

 

Due to related parties

 

 

2,281

 

 

 

3,255

 

Total liabilities

 

 

776,448

 

 

 

1,763,961

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 13)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

 

587

 

 

 

579

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value per share,

 

 

 

 

 

 

 

 

200,000 shares authorized; none issued or outstanding

 

 

 

 

 

 

Excess shares, $0.01 par value per share,

 

 

 

 

 

 

 

 

300,000 shares authorized; none issued or outstanding

 

 

 

 

 

 

Common stock, $0.01 par value per share, 1,120,000 shares authorized,

 

 

 

 

 

 

 

 

186,626 and 186,626 shares issued, and 173,963 and 173,963 shares

   outstanding, respectively

 

 

1,740

 

 

 

1,740

 

Capital in excess of par value

 

 

1,516,949

 

 

 

1,516,543

 

Accumulated income (loss)

 

 

107,507

 

 

 

(233,847

)

Accumulated distributions

 

 

(722,425

)

 

 

(345,347

)

Accumulated other comprehensive income (loss)

 

 

(91

)

 

 

1,177

 

Total stockholders' equity

 

 

903,680

 

 

 

940,266

 

Noncontrolling interest

 

 

1,397

 

 

 

1,081

 

Total equity

 

 

905,664

 

 

 

941,926

 

Total liabilities and equity

 

$

1,682,112

 

 

$

2,705,887

 

 

 

 

 

 

 

 

 

 

The abbreviation VIEs above means variable interest entities.

 

 

 

 

 

 

 

 

 

See accompanying notes to condensed consolidated financial statements

2


 

CNL HEALTHCARE PROPERTIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share data)

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income and related revenues

 

$

8,259

 

 

$

8,747

 

 

$

17,182

 

 

$

17,547

 

Resident fees and services

 

 

71,888

 

 

 

68,442

 

 

 

143,163

 

 

 

135,961

 

Total revenues

 

 

80,147

 

 

 

77,189

 

 

 

160,345

 

 

 

153,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

 

46,568

 

 

 

44,291

 

 

 

92,583

 

 

 

88,559

 

General and administrative expenses

 

 

5,225

 

 

 

3,194

 

 

 

8,184

 

 

 

6,360

 

Asset management fees

 

 

4,589

 

 

 

4,570

 

 

 

9,182

 

 

 

9,136

 

Property management fees

 

 

3,410

 

 

 

3,815

 

 

 

6,878

 

 

 

8,063

 

Financing coordination fees

 

 

1,878

 

 

 

 

 

 

1,878

 

 

 

 

Depreciation and amortization

 

 

12,347

 

 

 

13,771

 

 

 

24,681

 

 

 

28,666

 

Total operating expenses

 

 

74,017

 

 

 

69,641

 

 

 

143,386

 

 

 

140,784

 

Gain on sale of real estate

 

 

228

 

 

 

1,049

 

 

 

228

 

 

 

1,049

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

6,358

 

 

 

8,597

 

 

 

17,187

 

 

 

13,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

593

 

 

 

51

 

 

 

1,046

 

 

 

95

 

Interest expense and loan cost amortization

 

 

(11,359

)

 

 

(10,504

)

 

 

(22,648

)

 

 

(20,914

)

Equity in earnings of unconsolidated entity

 

 

98

 

 

 

84

 

 

 

194

 

 

 

171

 

Total other expense

 

 

(10,668

)

 

 

(10,369

)

 

 

(21,408

)

 

 

(20,648

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(4,310

)

 

 

(1,772

)

 

 

(4,221

)

 

 

(6,875

)

Income tax expense

 

 

(533

)

 

 

(928

)

 

 

(1,188

)

 

 

(1,545

)

Loss from continuing operations

 

 

(4,843

)

 

 

(2,700

)

 

 

(5,409

)

 

 

(8,420

)

Income (loss) from discontinued operations

 

 

333,370

 

 

 

(4,634

)

 

 

343,844

 

 

 

(6,812

)

Net income (loss)

 

 

328,527

 

 

 

(7,334

)

 

 

338,435

 

 

 

(15,232

)

Less: Amounts attributable to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss from continuing operations

 

 

(2

)

 

 

(21

)

 

 

(2

)

 

 

(43

)

Net income (loss) from discontinued operations

 

 

257

 

 

 

(5

)

 

 

265

 

 

 

(7

)

Net income (loss) attributable to common stockholders

 

$

328,272

 

 

$

(7,308

)

 

$

338,172

 

 

$

(15,182

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share of common stock (basic and

   diluted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

(0.03

)

 

$

(0.02

)

 

$

(0.03

)

 

$

(0.05

)

Discontinued operations

 

$

1.92

 

 

$

(0.03

)

 

$

1.98

 

 

$

(0.04

)

Weighted average number of shares of common stock

   outstanding (basic and diluted)

 

 

173,963

 

 

 

174,201

 

 

 

173,963

 

 

 

174,526

 

 

See accompanying notes to condensed consolidated financial statements.

3


 

CNL HEALTHCARE PROPERTIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

(in thousands)

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income (loss)

 

$

328,527

 

 

$

(7,334

)

 

$

338,435

 

 

$

(15,232

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized (loss) gain on derivative financial

   instruments, net

 

 

(130

)

 

 

496

 

 

 

(1,036

)

 

 

3,523

 

Reclassification of interest rate swaps upon

   derecognition

 

 

(509

)

 

 

127

 

 

 

(509

)

 

 

253

 

Reclassification of interest rate caps upon derecognition

 

 

265

 

 

 

 

 

265

 

 

 

 

Unrealized loss on derivative financial instruments of

   equity method investments

 

 

(2

)

 

 

 

 

12

 

 

 

 

Total other comprehensive income (loss)

 

 

(376

)

 

 

623

 

 

 

(1,268

)

 

 

3,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss)

 

 

328,151

 

 

 

(6,711

)

 

 

337,167

 

 

 

(11,456

)

Less: Comprehensive income (loss) attributable to

   noncontrolling interest

 

 

255

 

 

 

(26

)

 

 

263

 

 

 

(50

)

Comprehensive income (loss) attributable to common

   stockholders

 

$

327,896

 

 

$

(6,685

)

 

$

336,904

 

 

$

(11,406

)

 

See accompanying notes to condensed consolidated financial statements.

 

4


 

CNL HEALTHCARE PROPERTIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTEREST

QUARTER AND SIX MONTHS ENDED JUNE 30, 2019 (UNAUDITED)

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable

 

 

 

Common Stock

 

 

Capital in

 

 

 

 

 

 

 

 

 

 

Other

 

 

Total

 

 

Non-

 

 

 

 

 

 

 

Noncontrolling

 

 

 

Number

 

 

Par

 

 

Excess of

 

 

Accumulated

 

 

Accumulated

 

 

Comprehensive

 

 

Stockholders'

 

 

controlling

 

 

Total

 

 

 

Interest

 

 

 

of Shares

 

 

Value

 

 

Par Value

 

 

Income (Loss)

 

 

Distributions

 

 

Income (Loss)

 

 

Equity

 

 

Interest

 

 

Equity

 

Balance at March 31, 2019

 

$

574

 

 

 

 

173,963

 

 

$

1,740

 

 

$

1,516,949

 

 

$

(220,765

)

 

$

(365,593

)

 

$

285

 

 

$

932,616

 

 

$

1,154

 

 

$

934,344

 

Net income

 

 

13

 

 

 

 

 

 

 

 

 

 

328,272

 

 

 

 

 

 

 

328,272

 

 

 

242

 

 

 

328,527

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(376

)

 

 

(376

)

 

 

 

 

(376

)

Distribution to holder of promoted interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution to holder of noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(530

)

 

 

(530

)

Cash distributions declared ($2.0512 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

(356,832

)

 

 

 

 

(356,832

)

 

 

 

 

 

 

(356,832

)

Contribution from noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

531

 

 

 

531

 

Balance at June 30, 2019

 

$

587

 

 

 

 

173,963

 

 

$

1,740

 

 

$

1,516,949

 

 

$

107,507

 

 

$

(722,425

)

 

$

(91

)

 

$

903,680

 

 

$

1,397

 

 

$

905,664

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2018

 

$

579

 

 

 

 

173,963

 

 

$

1,740

 

 

$

1,516,543

 

 

$

(233,847

)

 

$

(345,347

)

 

$

1,177

 

 

$

940,266

 

 

$

1,081

 

 

$

941,926

 

Adoption of Lease ASU (refer to Note 2)

 

 

 

 

 

 

 

 

 

 

 

3,182

 

 

 

 

 

 

 

3,182

 

 

 

 

 

3,182

 

Net income

 

 

8

 

 

 

 

 

 

 

 

 

 

338,172

 

 

 

 

 

 

 

338,172

 

 

 

255

 

 

 

338,435

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,268

)

 

 

(1,268

)

 

 

 

 

(1,268

)

Distributions to holders of promoted interest

 

 

 

 

 

 

 

 

 

406

 

 

 

 

 

 

 

 

 

406

 

 

 

 

 

406

 

Distribution to holder of noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(530

)

 

 

(530

)

Cash distributions declared ($2.16759 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

(377,078

)

 

 

 

 

(377,078

)

 

 

 

 

(377,078

)

Contribution from noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

591

 

 

 

591

 

Balance at June 30, 2019

 

$

587

 

 

 

 

173,963

 

 

$

1,740

 

 

$

1,516,949

 

 

$

107,507

 

 

$

(722,425

)

 

$

(91

)

 

$

903,680

 

 

$

1,397

 

 

$

905,664

 

 

See accompanying notes to condensed consolidated financial statements.

5


 

CNL HEALTHCARE PROPERTIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTEREST

QUARTER AND SIX MONTHS ENDED JUNE 30, 2018 (UNAUDITED)

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable

 

 

 

Common Stock

 

 

Capital in

 

 

 

 

 

 

 

 

 

 

Other

 

 

Total

 

 

Non-

 

 

 

 

 

 

 

Noncontrolling

 

 

 

Number

 

 

Par

 

 

Excess of

 

 

Accumulated

 

 

Accumulated

 

 

Comprehensive

 

 

Stockholders'

 

 

controlling

 

 

Total

 

 

 

Interest

 

 

 

of Shares

 

 

Value

 

 

Par Value

 

 

Loss

 

 

Distributions

 

 

Income (Loss)

 

 

Equity

 

 

Interest

 

 

Equity

 

Balance at March 31, 2018

 

$

427

 

 

 

 

173,991

 

 

$

1,741

 

 

$

1,517,071

 

 

$

(216,649

)

 

$

(284,607

)

 

$

2,168

 

 

$

1,019,724

 

 

$

1,137

 

 

$

1,021,288

 

Subscriptions received for common stock