CCPT V Shareholder Brochure CCPT V Cole Credit Property Trust V, Inc. NOT FOR USE IN KS, MA OR OH. This material must be read in conjunction with the prospectus in order to understand fully all of the implications and risks of the offering of securities to which it relates. This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein, and the offering is being made by means of a prospectus. A copy of the prospectus must be made available to you in connection with this offering. Neither the Securities and Exchange Commission, the Attorney General of the State of New York nor any state securities regulator has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense. NOT A DEPOSIT | NOT FDIC INSURED | NOT GUARANTEED BY THE BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
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CCPT V - CIM Group€¦ · Cole® Net-Lease Assets include non-listed real estate investment trusts (REITs) known collectively as the Cole REITs®.Since 2004, nine Cole REITs have
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CCPT V Shareholder Brochure
CCPT VCole Credit Property Trust V, Inc.
NOT FOR USE IN KS, MA OR OH. This material must be read in conjunction with the prospectus in order to understand fully all of the implications and risks of the offering of securities to which it relates. This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein, and the offering is being made by means of a prospectus. A copy of the prospectus must be made available to you in connection with this offering. Neither the Securities and Exchange Commission, the Attorney General of the State of New York nor any state securities regulator has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.NOT A DEPOSIT | NOT FDIC INSURED | NOT GUARANTEED BY THE BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Consider These Risk Factors Before Investing
The offering is being made by means of a prospectus only to qualified individuals who meet minimum suitability requirements, as well as suitability standards as determined by your financial advisor. This material must be preceded or accompanied by a Cole Credit Property Trust V, Inc. (CCPT V) prospectus. Please read the prospectus in its entirety before investing and learn more about the risks associated with this offering, including, but not limited to:
» An investment in CCPT V involves a high degree of risk. Prospective shareholders should purchase shares of its common stock only if they can afford a complete loss of their investment.
» CCPT V is a “blind pool,” as it has limited operating history and has not identified all of the properties it intends to purchase. There can be no guarantee that it will meet its investment objectives.
» This investment has limited liquidity and is not required, through its charter or otherwise, to provide for a liquidity event. No public market exists for CCPT V, and one may never exist, for the shares of its common stock. There is also the possibility that even if shareholders were able to sell their shares, they may have to sell them at a substantial discount. Shareholders should have an expected investment time horizon in excess of seven years, if at all.
» There is no guarantee that shareholders will receive a distribution. Distributions have been paid from the proceeds of the offering, from borrowings, and may be derived from the sale of assets, and there is no limit on the amounts that may be paid from such other sources. Payments of distributions from sources other than cash flow from operations reduce the amount of capital available for real estate investments and may decrease or diminish a shareholder’s interest.
» There are conflicts of interest between CCPT V and CCPT V’s advisor and its affiliates, including payment by CCPT V of significant fees to the advisor and its affiliates.
» Economic factors may adversely affect the commercial real estate markets, including: changes in the economy, tenant turnover, interest rates, availability of mortgage funds, operating expenses, cost of insurance and each tenant’s ability to continue to pay rent.
» If CCPT V fails to qualify as a REIT, it will be subject to federal income tax. Cash available for distributions could decrease materially and adversely affect the return on your investment.
» Leverage (debt) is borrowed money. It is often used to supplement or enhance the total return on an investment. However, it is also recognized that leverage, when used excessively, can have a significant negative impact on the performance of an investment. Leverage risks may include an inability to pay the interest from the cash flow from the property, rates that can adjust to higher levels, and the potential for default on loans. In an effort to maximize the performance of a REIT portfolio, a number of factors are considered in evaluating financing options. Some of the more common factors include cost of capital, fixed versus variable debt, loan-to-value and debt coverage ratios. The use of leverage during the offering period could limit the amount of cash available to distribute to shareholders and could result in a decline in the value of an investment in CCPT V.
The properties pictured in this document have been acquired by CCPT V, sponsored by CCO Group, LLC (CCO Group), a subsidiary of CIM Group® (CIM®). Corporate tenants may also occupy numerous properties that are not owned by CIM. CCO Group and CIM are not affiliated with, associated with, or a sponsor of any of the tenants pictured or mentioned. The names, logos and all related product and service names, design marks and slogans are the trademarks or service marks of their respective companies.
Cole® Net-Lease Assets include non-listed real estate investment trusts (REITs) known
collectively as the Cole REITs®. Since 2004, nine Cole REITs have invested more than $22 billion
in assets and four of the REITs have achieved liquidity events.1
Cole Net-Lease Assets are operated by CCO Group, a subsidiary of CIM. CIM an institutional,
vertically-integrated owner and operator of real assets with decades of in-house acquisition,
investment, development, finance, leasing and asset management experience.
Past performance does not guarantee future results. 1) Data as of 12/31/17. There is no guarantee that any CCO Group program will replicate these types of liquidity events, if at all, and the programs are not required to effect a liquidity event at any time. The programs have limited liquidity as there is no public market, and one may never exist, for shares of common stock.
Cole Net-Lease Assets offer real estate investment opportunities oriented toward providing long-term value to shareholders as part of a diversified portfolio.
The Commercial Real Estate AdvantageCommercial real estate can serve as an integral part of well
diversified portfolios. CIM believes net-lease real estate
is one of the best long-term options when investing in
commercial real estate. Potential benefits may include:
» Relatively consistent distributions1
» Portfolio diversification through exposure
to commercial real estate1
» Reduced portfolio volatility through
a low level of correlation3
» The potential for capital appreciation1
What Is a Non-Listed REIT?
We believe that one of the most beneficial ways to
participate in the attributes of commercial real estate is
through a REIT. A REIT is a company that owns or finances
income-producing real estate (Source: NAREIT). A non-
listed REIT is illiquid and does not trade on a securities
exchange, is designed as a long-term investment, and
is generally only suitable for those with an investment
horizon in excess of seven years. While a non-listed REIT
does lack liquidity, it may also help provide lower portfolio
volatility because the shares are not openly traded on a
securities exchange.
How Does a REIT Work?
REIT REIT
Shares in REITare purchased
REIT acquires properties2
Tenants pay rent to REIT
REIT pays distribution to shareholder1
Potential Benefits of Non-Listed REITs
1) There is no guarantee that shareholders will receive a distribution, and distributions have been paid from the proceeds of the offering, from borrowings, and may be derived from the sale of assets. Fees and expenses associated with the management of the REIT will impact the ability to pay distributions and the effects of any capital appreciation. There is no guarantee that the shares of the REIT and the underlying properties will appreciate in value. Commercial real estate performs differently than other asset classes such as stocks or bonds. An investment in a non-listed REIT is not a direct investment in commercial real estate. 2) Requires payments by the REIT of significant fees to the advisor and its affiliates, many of which face a conflict of interest. 3) Shareholders should be aware that returns and volatility may not have a favorable effect on their portfolio. Shareholders should consider their ability to withstand the lack of liquidity and price transparency. The REIT may exhibit volatility even though its securities are not listed on a national securities exchange.
institutional investors — the great majority being pension funds. The Index represents investment returns from a single class of investor. As such, the NPI may not be representative of the market as a whole. Properties included in the index are apartments, hotels, industrial properties, office buildings and retail only. Individual REITs may or may not hold all of these property types. Calculations are based on quarterly returns of individual properties before the deduction of portfolio-level management fees, but inclusive of property-level management fees. Each property’s return is weighted by its market value (value-weighted). Index values are calculated for income, capital value and total. Large stocks are represented by the S&P 500, which is an unmanaged group of securities and considered to be representative of the stock market in general. Bonds are represented by Barclays U.S. Aggregate Bond Index. Treasury bills are represented by Bank of America/Merrill Lynch 3-month U.S. Treasury Bill Index. The data assumes reinvestment of all income and does not account for taxes or transaction costs. Each index provides a broad representation of a particular asset class and is not indicative of any investment. The indices are unmanaged and do not include fees, sales charges and other expenses typically associated with an investment. It is important to note that a direct investment in commercial real estate differs from an investment in non-listed REITs in many ways, such as the direct investment in real estate does not factor in expenses related to being a public company; does not include the impact of management and other expenses; and does not factor in the costs associated with raising capital — all of which help lower returns of non-listed REITs. Standard deviation measures the fluctuation of returns around the average return of the investment over a given period of time. The higher the standard deviation, the greater the variability (thus risk) of the investment returns.
The chart below shows that adding commercial real estate to a portfolio has historically reduced overall volatility while closely maintaining average annual returns.
Portfolio Allocation Over 10 Years (01/01/08 – 12/31/17)
This material must be read in conjunction with the prospectus in order to understand fully all of the implications and risks of the off ering of securities to which it relates. This is neither an off er to sell nor a solicitation of an off er to buy the securities described herein, and the off ering is being made by means of a prospectus. A copy of the prospectus must be made available to you in connection with this off ering. Neither the Securities and Exchange Commission, the Attorney General of the state of New York nor any state securities regulator has approved or disapproved of these securities or determined if the respective prospectus is truthful or complete. Any representation to the contrary is unlawful.
1) Prospective shareholders should be aware that returns and volatility may not have a favorable eff ect on their portfolio, and should consider their ability to withstand the lack of liquidity and price transparency. Non-listed REITs incur signifi cant fees and expenses. The REIT may exhibit volatility even though its securities are not listed on a national securities exchange.
PLEASE SEE THE REVERSE SIDE OF THIS DOCUMENT FOR ADDITIONAL IMPORTANT INFORMATION.
NOT A DEPOSIT | NOT FDIC INSURED | NOT GUARANTEED BY ANY BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Commercial real estate performs diff erently than other asset classes, such as stocks or bonds, and lacks liquidity. An investment in a non-listed REIT is not a direct investment in commercial real estate.
NOT A DEPOSIT | NOT FDIC INSURED | NOT GUARANTEED BY THE BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
The disciplined investment approach employed for
Cole Net-Lease Assets focuses on acquiring real estate
in strategic locations leased to creditworthy tenants on
long-term net leases. Net leases require the tenant to pay
all or a portion of the taxes, fees and maintenance costs
for the property in addition to rent, significantly lessening
the impact of those expenses on the property’s net
operating income. The Cole Net-Lease investment objectives
emphasize the following real estate attributes:
» Creditworthy Tenants: Properties leased to tenants
with strong balance sheets, access to capital and proven
operational track records
» Lease Structure: Double-net and triple-net leases of
10 or more years, corporate-backed guarantees and
contractual rent bumps
» Strategic Locations: Mission-critical and necessity-
based properties with newer construction, strategically
located in areas with strong regional demographics and
infrastructure
Throughout the lifecycle of each Cole REIT, experienced
real estate professionals employ a clearly defined and
disciplined approach to the acquisition and investment
process, ongoing operations and active portfolio
management. The fundamental objective is to build and
manage net-lease portfolios with reliable and growing
net operating income.1
Track Record
Since 2004, nine Cole REITs have collectively invested more
than $22 billion in assets. Four of the nine REITs have
achieved liquidity events, returning $9.4 billion in equity
to shareholders.2
Vertically-Integrated Owner and Operator of Real Assets
CIM brings decades of in-house acquisition, investment,
development, finance, leasing and asset management
experience. Throughout its more than 20-year history,
CIM has acquired approximately $55 billion of assets on
behalf of various real asset programs.3 CIM’s multi-sector
investment expertise includes retail, office, industrial,
residential, entertainment and more.
CIM has more than 80 institutional partners and co-investors
globally, including some of the world’s largest pension funds,
sovereign wealth funds and corporations, which in aggregate
have committed more than $13 billion since inception.3
The Cole Net-Lease Advantage
1) There is no guarantee that the REIT will achieve its objectives. 2) Data as of 12/31/17. There is no guarantee that any CCO Group program will replicate these types of liquidity events, if at all, and the programs are not required to effect a liquidity event at any time. The programs have limited liquidity as there is no public market, and one may never exist, for shares of common stock. 3) Data as of 12 /31/17. Represents the total gross value of the properties acquired by CIM on behalf of various investment programs, including real estate and infrastructure, and includes $22 billion of Cole REIT investments.
Past performance does not guarantee future results. There is no guarantee that any CCO Group program will replicate these types of liquidity events, if at all, and the programs are not required to effect a liquidity event at any time. The programs have limited liquidity as there is no public market for shares of common stock and one may never exist. Please consult the Prior Performance Summary and Appendix A - Prior Performance Tables sections of CCPT V’s prospectus for a further discussion as certain Cole REIT programs including CCPT, CCPT II and CCIT, have experienced adverse business developments. There is no guarantee that shareholders will receive a distribution. Distributions have been paid from the proceeds of the offering, from borrowings, and may be derived from the sale of assets, and there is no limit on the amounts that may be paid from such other sources.
Cole REITs’ Four Full Cycle Liquidity Events
Cole Credit Property Trust, Inc. (CCPT)
Cole Credit Property Trust, Inc. II (CCPT II)
Cole Credit Property Trust, Inc. III (CCPT III)
Cole Corporate Income Trust, Inc. (CCIT)
Non-Listed REIT Timeline
The Start-Up Portfolio Build-Out Management Exit Event
Acquisitions
Management
Income production through ongoing
management
Liquidation of portfolio through selling of assets or
portfolio, or listing on a public exchange
To date, four of the nine Cole REITs have achieved full
cycle liquidity events including three retail strategy REITs.
One other REIT – Cole Real Estate Income Strategy (Daily
NAV), Inc. (INAV) – is structured as a continuous offering.
What Is a Full Cycle Event for a Non-Listed REIT?
A full cycle event for a non-listed REIT occurs when a REIT
completes the process of raising capital, buying properties and
effectively managing the overall portfolio through an exit event.
For CCPT V, we intend to consider alternatives for providing
liquidity for shareholders beginning five to seven years
following the termination of the initial public offering.
NOT A DEPOSIT | NOT FDIC INSURED | NOT GUARANTEED BY THE BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Cole Net-Lease Retail Investment Objectives:
Retail Corridor
259
42
42
ShoppingCenter
DowntownKilgore, TX
Residential
Residential
NationalSuperstore
1) Double net lease (NN) is a lease under which the tenant agrees to pay all operating expenses associated with the property (e.g., real estate taxes, insurance, maintenance), but excludes some or all major repairs (e.g. roof, structure, parking lot). Triple net lease (NNN) is a lease under which the tenant agrees to pay all expenses associated with the property (e.g., real estate taxes, insurance, maintenance and repairs).
1) As of date of acquisition 03/09/16. 2) Tenant has two renewal options. Option 1: Five years at +/- 10% rent increase; and Option 2: Four and a half years at +/- 5% rent increase.
ShoppingCenter
Residential
Residential
Retail Corridor
18
18
62
62
ShenangoValleyMall
Case Study: Lowe’sCCPT V acquired a 126,078-square-foot single-tenant store occupied by Lowe’s.
This store is located approximately 18 miles northeast of Youngstown, OH, and
70 miles northwest of Pittsburgh in Hermitage, PA.
The property is situated at the intersection of Hermitage Road and US 62,
cross streets that serve as the area’s primary retail corridor. New retail
development has shifted the center of the trade area to this intersection.
Major retailers in the area include Home Depot, Walmart, Kohl’s, Staples,
Giant Eagle, T.J.Maxx and Kmart.
Lowe’s Home Centers, Inc., is the major retail operating
subsidiary of Lowe’s Companies, Inc., a publicly traded
company listed on the New York Stock Exchange (NYSE:
NOT A DEPOSIT | NOT FDIC INSURED | NOT GUARANTEED BY THE BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Cole Credit Property Trust V, Inc.Key Takeaways:
» The Cole Net-Lease investment approach for CCPT V
focuses on acquiring necessity retail real estate leased
to creditworthy tenants on long-term net leases and
situated in strategic locations.
» Experienced real estate professionals employ a
clearly-defined and disciplined approach to CCPT V’s
acquisition and investment process, ongoing operations
and active portfolio management.
» CCPT V’s objective is to collect rent from industry-
leading corporations across the country and provide a
stream of monthly distributions to our shareholders.1
HighlightsOffering price Class A Shares Class T Shares
Price to Public (POP) $24.37 $23.35
Net Offering Price $22.18 $22.18
Distribution Reinvestment Class A Shares Class T Shares
Purchase Price $22.18 $22.18
Minimum Investment: $2,500 Suitability Requirements: A net worth of at least $250,000 or a gross annual income of at least $70,000 and a net worth of at least $70,000. Additional state suitability requirements can be found in the prospectus.
CCPT V distributions are calculated as a dollar value payable on a per share basis, which is set by the Board of Directors and reviewed quarterly.
Share Redemption Program
Share Purchase Anniversary Redemption Price
<1 Year N/A
1 Year 95%
2 Years 97.5%
3 Years 100%
CCPT V will not redeem in excess of 5% of the weighted average number of shares outstanding during the trailing 12-month period prior to the redemption date. The cash available for redemption will be limited to proceeds from the sale of shares pursuant to our DRIP. The amount paid for redeemed shares will be equal to a percentage of the most recent estimated per share net asset value (NAV), as determined by CCPT V’s Board of Directors, depending on the length of time the shares are held.
Other restrictions apply: CCPT V’s Board of Directors may amend, suspend or terminate the redemption program at any time after providing 30 days’ notice to stockholders. Please consult the prospectus for further information.
Cole Credit Property
Trust, Inc.
CCPT started raising
capital in 2004, closed
to new investments in
2005 and was acquired by
VEREIT, Inc. in 2014.
Cole Credit Property
Trust II, Inc.
CCPT II started raising
capital in 2005, closed to
new investments in 2009
and merged with Spirit
Realty Capital in 2013.
Cole Credit Property
Trust III, Inc.
CCPT III started raising
capital in 2009, closed to
new investments in 2012
and listed on the New York
Stock Exchange in 2013.
Cole Credit Property
Trust IV, Inc.
CCPT IV started raising
capital in 2012 and closed
to new investments in 2014.
Cole Credit Property
Trust V, Inc.
CCPT V started raising
capital in 2014 and is open
to new investments.
Cole Capital Retail Series
1) There is no guarantee the REIT will meet its objectives. There is no guarantee that shareholders will receive a distribution, and distributions have been paid from the proceeds of the offering, from borrowings, and may be derived from the sale of assets. Fees and expenses associated with the management of the REIT will impact the ability to pay distributions and the effects of any capital appreciation. There is no guarantee that the shares of the REIT and the underlying properties will appreciate in value.