As previously reported by The DI Wire, the REIT’s board authorized a special distribution of the net proceeds of the sale to stockholders totaling approximately $153.2 million in cash and 8.85 million common shares of beneficial interest of EPR. The distribution was made on or around April 20, 2017.
The EPR shares were distributed to stockholders based on a ratio of 2.7219 shares of EPR common for each 100 shares of REIT common stock. The board also declared a $0.10 per share cash distribution.
The value of the EPR shares was approximately $672.7 million or $2.07 per share of CNL Lifestyle common stock when calculated based on EPT’s average trading price on April 20th. The REIT noted that the trading price will continue to change after the distribution.
The company also updated its estimated net asset value from $2.10 per share as of November 30, 2016 to $0.10 per share as of April 20, 2017.
To assist the Board and the Company’s valuation committee, which is comprised solely of the Company’s independent directors, in establishing a new estimated NAV per share of the Company’s common stock as of April 20, 2017,
CNL Lifestyle Advisor Corporation, the REIT’s advisor, prepared an analysis for the company’s valuation committee based on the REIT’s net assets and liabilities after subtracting the value of the distribution.
The board accepted the recommendation of the committee and approved $0.10 as the estimated NAV per share of the Company’s common stock based on a share count of approximately 325.2 million shares issued and outstanding as of April 20, 2017.
CNL Lifestyle Properties, which focuses on lifestyle-related industries, went effective in April 2004 and raised $2.9 billion in investor equity in multiple offerings before closing in April 2011.