NorthStar Healthcare Income was reportedly formed to acquire, originate and asset manage a diversified portfolio of equity, debt and securities investments in healthcare real estate, according to its website. The company launched in February 2013, and through November 8, 2018, reportedly raised total gross proceeds of $2 billion, including $225.3 million through its distribution reinvestment plan.
The White Law Group has been investigating claims involving the REIT since December 2017, when it reduced its distribution rate to 3.31% from 6.67%. It has continued a decline in NAV since 2017 when it was valued at $8.50 per share.
NorthStar Healthcare has announced a revised estimated net asset value of $3.89 per share, as of June 30, 2020. The REIT’s previous NAV was $6.25 per share, as of June 30, 2019, according to recent filings with the Securities and Exchange Commission.
The REIT notes that as of June 30, 2020, the estimated value of the REIT’s 75 healthcare properties was $1.6 billion, compared with an aggregate cost, including purchase price, deferred costs, and other assets of nearly $2.2 billion.
The estimated value of the REIT’s joint venture investments was $389.3 million, compared with a total equity contribution of $511.1 million.
In total, the estimated value of NorthStar Healthcare’s healthcare properties, joint venture investments and healthcare debt investment was approximately $2.06 billion, an approximate 25 percent decrease in value compared to the total cost.
The valuation is reportedly based on the estimated value of NorthStar Healthcare’s assets, less the estimated value of its liabilities, divided by the number of shares outstanding as of June 30, 2020.
In April 2020, the board suspended all repurchases under the share repurchase program in order to preserve capital and liquidity. Distributions were suspended in February 2019.
Unfortunately for investors, this new NAV share price represents a significant loss in value.
The White Law Group continues to investigate the liability that brokerage firms may have for unsuitably recommending that investors invest in Northstar Healthcare Income Inc.
Brokerage firms have an obligation to recommend only investments that are suitable for the investor in light of the investor’s age, investment experience, net worth, and investment objective. If a brokerage firm unsuitably recommends an investment they can be held responsible for the losses in a FINRA arbitration claim.
FINRA’s arbitration forum is a way for investors to resolve disputes if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment.
If you are concerned about investment losses in Northstar Healthcare Income Inc., the securities attorneys at the White Law Group may be able to help you, Please call 888-637-5510 for a free consultation. The White Law Group is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois. For more information on the firm please visit www.whitesecuritieslaw.com.