Recovery of Investment Losses – Healthcare Trust Inc.
The White Law Group continues to investigate FINRA arbitration claims involving Healthcare Trust Inc.
Unfortunately for investors it appears that many financial advisors/brokerage firms that sold REITs such as Healthcare Trust Inc. may have understated or misrepresented the risks and liquidity problems.
Healthcare Trust, Inc. (“HTI”) is a non-traded real estate investment trust (REIT) which seeks to acquire a diversified portfolio of real estate properties, focusing primarily on healthcare-related assets including medical office buildings, seniors housing and other healthcare-related facilities, according to its website. HTI is closed to all new investments.
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.
According to Central Trade & Transfer, a secondary market website, shares of Healthcare Trust Inc. have recently been listed for $12.75/per share. Unfortunately for many investors, it appears that the secondary market price would represent a loss on their initial capital investment.
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.
Investigating Potential Lawsuits
Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.
Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.
High commissions could be a motivating factor for unscrupulous financial advisors to sell the REIT regardless of whether the investment is in line with the client’s investment objectives and profile. Moreover, the total commissions and expenses make it difficult for the REIT to perform in line with the market.
If you invested in a Healthcare Trust Inc. and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 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 and Vero Beach, Florida.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.