CNL Healthcare Properties, Inc. reported a net loss of approximately $14.5 million for the fiscal year ending December 31, 2024, compared to a net loss of $25.7 million in the previous year. The company's total revenues increased to $366 million, up from $341.5 million in 2023, driven primarily by a rise in resident fees and services income, which reached $338.7 million, reflecting improved occupancy rates and increased rates charged to residents. Rental income also saw a slight increase, totaling $27.3 million, compared to $26.9 million in the prior year.
The company’s operational performance showed signs of improvement, with same-store net operating income (NOI) rising by 14.6% to approximately $103.7 million, attributed to higher average occupancy and rate increases. However, property operating expenses also increased to $245.5 million from $235.5 million, primarily due to the same factors. The overall financial condition of CNL Healthcare Properties indicates a focus on enhancing occupancy and managing costs amid a challenging economic environment characterized by elevated interest rates and inflation.
Strategically, CNL Healthcare Properties has been exploring various liquidity options since 2017, including the potential sale of assets and a possible listing on a national securities exchange. The company suspended its Reinvestment and Redemption Plans in July 2018 to focus on these strategic alternatives. As of December 31, 2024, the company owned 70 properties, including 69 seniors housing communities, with a geographic presence across 26 states. The company also acquired the remaining 5% interest in the Watercrest at Katy Joint Venture in November 2024, consolidating its ownership of this property.
CNL Healthcare Properties reported approximately $90 million in liquidity as of December 31, 2024, consisting of $44 million in cash and $46 million in undrawn availability under its credit facility. The company’s total indebtedness was approximately $566.1 million, with a debt leverage ratio of about 30.1%. The company continues to manage its debt exposure through interest rate caps and swaps, although it remains vulnerable to fluctuations in interest rates, which could impact its cash flows and ability to pay distributions.
Looking ahead, CNL Healthcare Properties aims to maintain its REIT status by distributing at least 90% of its taxable income to stockholders. The company’s board of directors has indicated that future distributions will depend on various factors, including cash flow from operations, debt service obligations, and overall market conditions. The company remains committed to exploring strategic alternatives to enhance liquidity and shareholder value while navigating the complexities of the current economic landscape.
About CNL Healthcare Properties, Inc.
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