Healthcare Trust Losses – Original Offering Price $25/share
If you suffered losses investing in Healthcare Trust Inc., at the recommendation of your financial advisor, the securities attorneys at The White Law Group may be able to help you recover your losses. It is possible to file a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Healthcare Trust, Inc. is a non-traded real estate investment trust sponsored by AR Global.
According to SEC filings on March 13, 2018, Healthcare Trust, Inc. commenced a self-tender offer for up to 2,000,000 Shares at a price of $13.15 per share.
The offer is in response to an unsolicited offer from MacKenzie Capital Management, LP and certain of its affiliates to stockholders of the Company to purchase up to 2,000,000 shares of the Company’s common stock, par value $0.01 per share at a price of $12.11 per share in cash.
MacKenzie’s offer expires on April 3, 2018 (unless extended). The Company offer is being made in order to deter MacKenzie and other potential future bidders that may try to exploit the illiquidity of the shares and acquire them from the Company’s stockholders at prices substantially below their Estimated Per-Share NAV, according to SEC filings.
The Company’s board of directors is urging shareholders to reject Mackenzie’s offer, believing it is not in their best interest. This belief is based on the most recent estimated net asset value per share of $21.45 (approved by the Board on March 30, 2017.)
The purchase price in the MacKenzie Offer is $9.34 per Share, or 44%, lower than the Estimated Per-Share NAV. The per share price you will actually be paid will be no more than $12.04 per share since MacKenzie will reduce the actual share price by any distributions paid by the company after January 31, 2018.
The original purchase price of Healthcare Trust Inc. was $25/share.
Because the offer price under the company offer is still well below the current Estimated Per-Share NAV of the shares, the Company’s board of directors recommends that stockholders DO NOT tender their Shares in the Company Offer or the lower MacKenzie Offer.
Update On April 4, 2019
According to recent SEC filings, the board of Healthcare Trust Inc. has approved a $17.50 net asset value per share of the company’s common stock as of December 31, 2018. The valuation represents a decrease of nearly 13.6 percent compared to last year’s NAV per share of $20.25. The original offering price was $25.00/share.
The company previously lowered its annual distribution rate from $1.45 to $0.85 per share on March 1, 2018, and previously from $1.70 per share to $1.45 per share on April 1, 2017.
Update on May 16, 2019
According to Central Trade & Transfer, a secondary market website, shares of Healthcare Trust Inc. have recently been listed for $10.50/per share. Unfortunately for many investors, it appears that the secondary market price would represent a significant loss on their initial capital investment.
Investigating Potential Lawsuits
The White Law Group continues to investigate potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like Healthcare Trust Inc.
Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.
Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.
Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%.
Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.
In addition to the high risks, non-traded REITs, like Healthcare Trust Inc., often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If you suffered losses investing in Healthcare Trust Inc. and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.