NorthStar Healthcare Income Inc. – Decreases NAV – update on May 16, 2019
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According to filings with the SEC, on December 4, 2018, NorthStar Healthcare Income Inc. (NHI) announced an estimated NAV per share of $7.10 as of June 30, 2018.
This is a reduction of approximately 16.5% from the previous NAV per share of $8.50 per share as of June 30, 2017. The REIT engaged Robert A. Stanger & Co. Inc. to assist the board of NHI in estimating the NAV per share, according to filings.
NorthStar Healthcare Income Inc., a publicly registered non-traded REIT, was reportedly formed to acquire, originate and asset manage a diversified portfolio of equity, debt and securities investments in healthcare real estate. From 2013 to 2016, the REIT raised $1.8 billion in investor equity.
NorthStar identified numerous factors for the decline in estimated NAV per share, including occupancy challenges in select markets, increased property operating expenses, challenging conditions in the skilled nursing industry resulting in the restructuring of leases and replacement of tenants reducing rental revenues, operator transitions on certain properties leading to short-term disruptions in operations and occupancy, and distributions in excess of funds available for distribution.
Update on May 16, 2019
Shares of NorthStar Healthcare Income are currently listed for sale on Central Trade & Transfer, a secondary market for private placements, for just $3.00/share. This could mean losses for investors as the original offering price was $10.00/share.
Investors may have claims.
Non-traded REITs are generally complex, high risk investments and not suitable for every investor. They are also illiquid, meaning they are not traded on any market. Often investors find themselves in the situation of being unable to sell the investment when they are ready. If they are able to find a buyer, it is often at a reduced price.
The White Law Group continues to investigate potential securities fraud claims involving broker dealers who may have unsuitably recommended non-traded REITs such as NorthStar Healthcare Income Inc.
If you are concerned about your investment in NorthStar Healthcare Income, the securities attorneys may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you this investment. For a free consultation with a securities attorney, please call 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.