Company Quick10K Filing
Quick10K
CNL Healthcare Properties II
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
8-K 2019-09-10 Shareholder Vote, Exhibits
8-K 2019-05-06 M&A, Regulation FD, Exhibits
8-K 2019-03-13 Enter Agreement, Leave Agreement, Other Events, Exhibits
8-K 2019-03-01 Enter Agreement, Exhibits
8-K 2019-01-24 Regulation FD, Other Events
8-K 2019-01-24 Regulation FD, Other Events
8-K 2018-10-31 Other Events, Exhibits
8-K 2018-09-28 Officers, Exhibits
8-K 2018-08-31 Enter Agreement, M&A, Off-BS Arrangement, Other Events, Exhibits
8-K 2018-07-03 Enter Agreement, Exhibits
8-K 2018-06-12 Shareholder Vote
8-K 2018-03-06 Other Events
8-K 2018-01-30 Officers
8-K 2017-12-31 Other Events
8-K 2017-12-27 Enter Agreement, M&A, Off-BS Arrangement, Other Events, Exhibits
CNIG Corning Natural Gas Holding 63
IGC India Globalization Capital 45
SNWV Sanuwave Health 28
BBLS Petrolia Energy 13
SPIN Spine Injury Solutions 3
POYE Po Yuen Cultural 0
PROC Procaccianti Hotel REIT 0
CACA China Crawfish 0
DESEO Deseo Swimwear 0
GPRI Geo Point Resources 0
CHPII 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 chpii-ex311_6.htm
EX-31.2 chpii-ex312_7.htm
EX-32.1 chpii-ex321_8.htm

CNL Healthcare Properties II Earnings 2019-06-30

CHPII 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 chpii-10q_20190630.htm 10-Q chpii-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:  000-55777

 

CNL Healthcare Properties II, Inc.

(Exact name of registrant as specified in its charter)

 

Maryland

 

47-4524619

(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 the registrant’s outstanding common stock as of July 31, 2019 was 4,899,139 Class A shares.

 

 


 

CNL HEALTHCARE PROPERTIES II, INC. AND SUBSIDIARIES

 

INDEX

 

 

 

 

 

PART I.  FINANCIAL INFORMATION

 

PAGE

 

 

 

 

Item 1.

Condensed Consolidated Financial Information (unaudited):

 

3

 

Condensed Consolidated Balance Sheets

 

3

 

Condensed Consolidated Statements of Operations

 

4

 

Condensed Consolidated Statements of Stockholders’ Equity

 

5

 

Condensed Consolidated Statements of Cash Flows

 

6

 

Notes to Condensed Consolidated Financial Statements

 

7

Item 2.

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

 

19

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

 

32

Item 4.

Controls and Procedures

 

32

 

 

 

 

PART II.  OTHER INFORMATION

 

33

 

 

 

 

Item 1.

Legal Proceedings

 

33

Item 1A.

Risk Factors

 

33

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

39

Item 3.

Defaults Upon Senior Securities

 

40

Item 4.

Mine Safety Disclosures

 

40

Item 5.

Other Information

 

40

Item 6.

Exhibits

 

40

 

 

 

 

Exhibit Index

 

41

Signatures

 

42

 

 

 

2


 

Item 1.

Condensed Consolidated Financial Information

CNL HEALTHCARE PROPERTIES II, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

 

 

June 30,

 

 

December 31,

 

ASSETS

 

2019

 

 

2018

 

Real estate investment properties, net

 

$

42,224,947

 

 

$

42,969,180

 

Assets held for sale, net

 

 

 

 

 

14,202,202

 

Cash

 

 

4,431,446

 

 

 

8,003,576

 

Intangibles, net

 

 

983,925

 

 

 

1,497,809

 

Other assets

 

 

315,869

 

 

 

382,637

 

Restricted cash

 

 

367,035

 

 

 

233,971

 

Total assets

 

$

48,323,222

 

 

$

67,289,375

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Mortgage loans, net

 

$

6,047,401

 

 

$

18,665,013

 

Liabilities associated with assets held for sale

 

 

 

 

 

6,247,187

 

Accounts payable and accrued liabilities

 

 

705,664

 

 

 

497,081

 

Other liabilities

 

 

156,208

 

 

 

128,957

 

Due to related parties

 

 

67,660

 

 

 

85,902

 

Total liabilities

 

 

6,976,933

 

 

 

25,624,140

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value per share, 10,000,000 shares

   authorized; none issued or outstanding

 

 

 

 

 

 

Class A Common stock, $0.01 par value per share, 1,200,000,000

   shares authorized; 4,899,139 and 4,899,139 shares both issued

   and outstanding, respectively

 

 

48,995

 

 

 

48,995

 

Class T Common stock, $0.01 par value per share, 700,000,000 shares

   authorized; none issued or outstanding

 

 

 

 

 

 

Class I Common stock, $0.01 par value per share, 100,000,000 shares

   authorized; none issued or outstanding

 

 

 

 

 

 

Capital in excess of par value

 

 

48,039,220

 

 

 

48,039,220

 

Accumulated loss

 

 

(3,077,633

)

 

 

(3,464,160

)

Accumulated distributions

 

 

(3,664,293

)

 

 

(2,958,820

)

Total stockholders' equity

 

 

41,346,289

 

 

 

41,665,235

 

Total liabilities and stockholders' equity

 

$

48,323,222

 

 

$

67,289,375

 

 

See accompanying notes to condensed consolidated financial statements.

3


 

CNL HEALTHCARE PROPERTIES II, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 

 

 

Quarter Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Resident fees and services

 

$

2,152,100

 

 

$

1,140,235

 

 

$

4,350,450

 

 

$

2,264,760

 

Total revenues

 

 

2,152,100

 

 

 

1,140,235

 

 

 

4,350,450

 

 

 

2,264,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

 

1,322,985

 

 

 

622,018

 

 

 

2,715,453

 

 

 

1,239,166

 

General and administrative expenses

 

 

421,992

 

 

 

285,464

 

 

 

825,239

 

 

 

604,697

 

Acquisition fees and expenses

 

 

 

 

 

 

 

 

 

 

 

818

 

Property management fees

 

 

107,879

 

 

 

80,360

 

 

 

217,626

 

 

 

154,322

 

Depreciation and amortization

 

 

674,109

 

 

 

324,954

 

 

 

1,344,290

 

 

 

648,678

 

Total operating expenses

 

 

2,526,965

 

 

 

1,312,796

 

 

 

5,102,608

 

 

 

2,647,681

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(374,865

)

 

 

(172,561

)

 

 

(752,158

)

 

 

(382,921

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other income

 

 

12,035

 

 

 

40

 

 

 

18,260

 

 

 

62

 

Interest expense and loan cost amortization

 

 

(258,341

)

 

 

(194,099

)

 

 

(515,910

)

 

 

(375,183

)

Total other expense

 

 

(246,306

)

 

 

(194,059

)

 

 

(497,650

)

 

 

(375,121

)

Loss before income taxes

 

 

(621,171

)

 

 

(366,620

)

 

 

(1,249,808

)

 

 

(758,042

)

Income tax expense

 

 

 

 

 

(13,827

)

 

 

(30,533

)

 

 

(45,183

)

Loss from continuing operations

 

 

(621,171

)

 

 

(380,447

)

 

 

(1,280,341

)

 

 

(803,225

)

Income from discontinued operations

 

 

1,563,821

 

 

 

30,254

 

 

 

1,666,868

 

 

 

62,794

 

Net income (loss)

 

$

942,650

 

 

$

(350,193

)

 

$

386,527

 

 

$

(740,431

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A common stock (basic and diluted):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Class A stockholders

 

$

942,650

 

 

$

(76,206

)

 

$

386,527

 

 

$

(170,164

)

Net income (loss) per share of Class A common stock

   outstanding

 

$

0.19

 

 

$

(0.09

)

 

$

0.08

 

 

$

(0.20

)

Weighted average number of Class A common shares

   outstanding

 

 

4,899,139

 

 

 

867,723

 

 

 

4,899,139

 

 

 

846,574

 

Distributions declared per Class A common share

 

$

 

 

$

0.1440

 

 

$

0.1440

 

 

$

0.2880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class T common stock (basic and diluted):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to Class T stockholders

 

$

 

 

$

(246,458

)

 

$

 

 

$

(517,528

)

Net loss per share of Class T common stock outstanding

 

$

 

 

$

(0.09

)

 

$

 

 

$

(0.20

)

Weighted average number of Class T common shares

   outstanding

 

 

 

 

 

2,806,307

 

 

 

 

 

 

2,574,718

 

Distributions declared per Class T common share

 

$

 

 

$

0.1175

 

 

$

 

 

$

0.2354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class I common stock (basic and diluted):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to Class I stockholders

 

$

 

 

$

(27,529

)

 

$

 

 

$

(52,739

)

Net loss per share of Class I common stock outstanding

 

$

 

 

$

(0.09

)

 

$

 

 

$

(0.20

)

Weighted average number of Class I common shares

   outstanding

 

 

 

 

 

313,463

 

 

 

 

 

 

262,378

 

Distributions declared per Class I common share

 

$

 

 

$

0.1314

 

 

$

 

 

$

0.2626

 

 

See accompanying notes to condensed consolidated financial statements.

 

4


 

CNL HEALTHCARE PROPERTIES II, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)

FOR THE QUARTER AND SIX MONTHS ENDED JUNE 30, 2019 AND 2018

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A

 

 

Class T

 

 

Class I

 

 

Capital in

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

Number

 

 

Par

 

 

Number

 

 

Par

 

 

Number

 

 

Par

 

 

Excess of

 

 

Accumulated

 

 

Accumulated

 

 

Stockholders'

 

 

 

of Shares

 

 

Value

 

 

of Shares

 

 

Value

 

 

of Shares

 

 

Value

 

 

Par Value

 

 

Loss

 

 

Distributions

 

 

Equity

 

Balance at March 31, 2019

 

 

4,899,139

 

 

$

48,995

 

 

 

 

 

$

 

 

 

 

 

$

 

 

$

48,039,220

 

 

$

(4,020,283

)

 

$

(3,664,293

)

 

$

40,403,639

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

942,650

 

 

 

 

 

 

942,650

 

Balance at June 30, 2019

 

 

4,899,139

 

 

$

48,995

 

 

 

 

 

$

 

 

 

 

 

$

 

 

$

48,039,220

 

 

$

(3,077,633

)

 

$

(3,664,293

)

 

$

41,346,289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2018

 

 

4,899,139

 

 

$

48,995

 

 

 

 

 

$

 

 

 

 

 

$

 

 

$

48,039,220

 

 

$

(3,464,160

)

 

$

(2,958,820

)

 

$

41,665,235

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

386,527

 

 

 

 

 

 

386,527

 

Cash distributions declared

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(705,473

)

 

 

(705,473

)

Balance at June 30, 2019

 

 

4,899,139

 

 

$

48,995

 

 

 

 

 

$

 

 

 

 

 

$

 

 

$

48,039,220

 

 

$

(3,077,633

)

 

$

(3,664,293

)

 

$

41,346,289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2018

 

 

839,410

 

 

$

8,394

 

 

 

2,620,776

 

 

$

26,206

 

 

 

253,489

 

 

$

2,535

 

 

$

35,549,090

 

 

$

(2,049,215

)

 

$

(1,248,505

)

 

$

32,288,505

 

Subscriptions received for common

   stock, including distribution

   reinvestments

 

 

36,771

 

 

 

367

 

 

 

382,015

 

 

 

3,821

 

 

 

94,274

 

 

 

943

 

 

 

5,355,565

 

 

 

 

 

 

 

 

 

5,360,696

 

Stock dividends issued

 

 

2,758

 

 

 

28

 

 

 

8,257

 

 

 

82

 

 

 

881

 

 

 

9

 

 

 

(119

)

 

 

 

 

 

 

 

 

 

Redemptions of common stock

 

 

(12,614

)

 

 

(126

)

 

 

(180

)

 

 

 

 

 

 

 

 

 

 

 

(126,773

)

 

 

 

 

 

 

 

 

(126,899

)

Stock issuance and offering costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(421,830

)

 

 

 

 

 

 

 

 

(421,830

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(350,193

)

 

 

 

 

 

(350,193

)

Cash distributions declared

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(483,068

)

 

 

(483,068

)

Balance at June 30, 2018

 

 

866,325

 

 

$

8,663

 

 

 

3,010,868

 

 

$

30,109

 

 

 

348,644

 

 

$

3,487

 

 

$

40,355,933

 

 

$

(2,399,408

)

 

$

(1,731,573

)

 

$

36,267,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2017

 

 

808,011

 

 

$

8,080

 

 

 

2,049,223

 

 

$

20,492

 

 

 

160,490

 

 

$

1,605

 

 

$

28,984,932

 

 

$

(1,658,977

)

 

$

(846,200

)

 

$

26,509,932

 

Subscriptions received for common

   stock, including distribution

   reinvestments

 

 

65,726

 

 

 

657

 

 

 

949,264

 

 

 

9,493

 

 

 

186,687

 

 

 

1,867

 

 

 

12,536,152

 

 

 

 

 

 

 

 

 

12,548,169

 

Stock dividends issued

 

 

5,202

 

 

 

52

 

 

 

14,919

 

 

 

149

 

 

 

1,467

 

 

 

15

 

 

 

(216

)

 

 

 

 

 

 

 

 

 

Redemptions of common stock

 

 

(12,614

)

 

 

(126

)

 

 

(2,538

)

 

 

(25

)

 

 

 

 

 

 

 

 

(152,130

)

 

 

 

 

 

 

 

 

(152,281

)

Stock issuance and offering costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,012,805

)

 

 

 

 

 

 

 

 

(1,012,805

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(740,431

)

 

 

 

 

 

(740,431

)

Cash distributions declared

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(885,373

)

 

 

(885,373

)

Balance at June 30, 2018

 

 

866,325

 

 

$

8,663

 

 

 

3,010,868

 

 

$

30,109

 

 

 

348,644

 

 

$

3,487

 

 

$

40,355,933

 

 

$

(2,399,408

)

 

$

(1,731,573

)

 

$

36,267,211

 

 

See accompanying notes to condensed consolidated financial statements.

 

5


 

CNL HEALTHCARE PROPERTIES II, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2019

 

 

2018

 

Operating activities:

 

 

 

 

 

 

 

 

Net cash flows provided by (used in) operating activities – continuing operations

 

$

470,175

 

 

$

(429,933

)

Net cash flows provided by operating activities – discontinued operations

 

 

188,175

 

 

 

345,124

 

Net cash flows provided by (used in) operating activities

 

 

658,350

 

 

 

(84,809

)

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(86,174

)

 

 

(16,749

)

Net cash flows used in investing activities – continuing operations

 

 

(86,174

)

 

 

(16,749

)

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

 

(23,520

)

Proceeds from sale of real estate

 

 

15,044,231

 

 

 

 

Net cash flows provided by (used in) investing activities – discontinued operations

 

 

15,044,231

 

 

 

(23,520

)

 

 

 

 

 

 

 

 

 

Net cash flows provided by (used in) investing activities

 

 

14,958,057

 

 

 

(40,269

)