ccpt v - cim group€¦ · cole® net-lease assets include non-listed real estate investment trusts...

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.

2www.cimgroup.com | © 2018 CCO GroupCCPT V Shareholder Brochure

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.

3© 2018 CCO Group | www.cimgroup.com

NOT A DEPOSIT | NOT FDIC INSURED | NOT GUARANTEED BY THE BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

Monthly Distributions: Rent collected from tenants

contributes to the monthly distributions.1

Capital Appreciation: Commercial real estate has the

potential to appreciate in value over the long term.1

Portfolio Diversification: Adding a non-correlated

asset class such as commercial real estate to an

existing portfolio helps increase diversification.1

Lower Portfolio Volatility: A well-diversified

portfolio has the potential to reduce volatility

without sacrificing return.3

Inflation Protection: Commercial real estate

values have historically been highly correlated

to inflation.1

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.


Portfolio Allocation

Past performance does not guarantee future results. Commercial real estate performs differently 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. There are significant differences between commercial real estate and non-listed REITs as discussed in further detail on the previous page. Non-listed REITs should be considered long-term investments. Prospective shareholders should be aware that returns and volatility may not have a favorable effect on their portfolio. Prospective 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. CCPT V believes the historical performance and correlation of commercial real estate compared to other asset classes is, however, relevant to evaluating an investment in a non-listed REIT comprising primarily commercial real estate assets. About the Data: ©2017 Morningstar, Inc. All rights reserved. The information contained herein: Is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index. Commercial real estate is represented by the NCREIF Property Index (NPI). The NCREIF Property Index is a quarterly time series composite total rate of return measure of investment performance of a very large pool of individual commercial real estate properties acquired in the private market for investment purposes only. All properties in the NPI have been acquired, at least in part, on behalf of tax-exempt

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)

Not for use in MA or OH. © 2018 Morningstar, Inc. All rights reserved. The information contained herein: (i) is proprietary to Morningstar and/or its content providers; (ii) may not be copied or distributed; and (iii) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. This is for illustrative purposes only and not indicative of any investment. An investment cannot be made directly in an index.

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

2325 East Camelback Road, 10th Floor, Phoenix, Arizona 85016 | 866.341.2653 | www.cimgroup.com

Securities Distributed By Affi liate Broker/Dealer: CCO Capital, LLC, Member FINRA/SIPC | ©2018 CCO Group

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.

Morningstar® | Independent Investment ResearchPortfolio Allocation

Portfolio Allocation Over 10 Years: 01/01/08 – 12/31/17

Adding Commercial Real Estate to a Portfolio Has Historically Reduced Overall Volatility While Closely Maintaining Average Annual Returns1

Data as of December 31, 2017

Past performance is no guarantee of future results.

6.0%

8.0%

7.0%Risk (Standard Deviation)

Returns

0%CRE

7.67%

6.45%

10%

40% 50%

5%CRE

37.5% 47.5%

10%

7.36%

6.45%

10%CRE

35% 45%

10%

7.06%

6.44%

15%CRE

32.5% 42.5%

10%

6.78%

6.43%

20%CRE

30% 40%

10%

6.50%

6.42%

Commercial Real Estate Large Stocks Bonds Treasury Bills


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.

Cole Net-LeaseInvestmentObjectives

StrategicLocations

CreditworthyTenants

LeaseStructure


Capital raise

Begin to acquire properties

Capital raise winds down

Acquisition of properties continues

Capital Raise

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.

Full Cycle Success®



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).

Creditworthy Tenants Lease Structure Strategic Locations

» Tenants that offer necessity-

and value-oriented products or

services

» Strong credit rating or proven

financial track record

» Net leases (NN or NNN),1 where

tenant is responsible for taxes and

maintenance

» Long-term lease (10+ years) with

contractual rent increases and

corporate-backed lease guarantees

» Main retail traffic thoroughfare

» Dense trade area with strong

regional demographics

» High visibility and accessibility

to customer base

For more than a decade, Cole REITs have acquired and operated net-lease,

single-tenant properties.

Single-Tenant Retail Investment StrategyOur single-tenant retail investment strategy focuses on acquiring necessity

properties that are integral to the daily life of consumers, such as:

The Retail Advantage: Necessity Single-Tenant Retail

» Single-tenant gas stations » Freestanding grocery stores » National superstores


126,078 Square Feet

Single-Tenant Retail

NN Lease for 10.8 Years1

Two Renewal Options with Rent Increases2

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:

LOW). Lowe’s offers roughly 36,000 products serving

homeowners, renters and professional customers. Lowe’s

is the second-largest home improvement retailer in North

America and operates approximately 1,800 stores, totaling

more than 200 million square feet.



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.


Trust II, Inc.

CCPT II started raising

capital in 2005, closed to

new investments in 2009

and merged with Spirit

Realty Capital in 2013.


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.


Trust IV, Inc.

CCPT IV started raising

capital in 2012 and closed

to new investments in 2014.


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.


Discuss with your financial advisor how investing in commercial real estate and Cole REITs may be appropriate for you.

Contact CIM at 866-341-2653 or visit us at www.cimgroup.com for more information.



CCPT5-BRO-GEN (05-18)

NOT A DEPOSIT | NOT FDIC INSURED | NOT GUARANTEED BY ANY BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

www.cimgroup.com

2325 East Camelback Road, 10th Floor, Phoenix, Arizona 85016 | 866.341.2653 | www.cimgroup.com

Securities Distributed By Affiliate Broker/Dealer: CCO Capital, LLC, Member FINRA/SIPC | ©2018 CCO Group

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