Healthcare Trust Inc. (HTI) – Decrease in Net Asset Value, Updated February 25, 2021
Recovery of Investment Losses in HTI
The White Law Group is continuing its investigation into the liability brokerage firms may have for unsuitably recommending Healthcare Trust Inc. (HTI) to investors. If your financial advisor unsuitably recommended investing in Healthcare Trust Inc. (HTI), and you incurred losses, you may be able to recover your losses by filing a FINRA Arbitration claim.
Healthcare Trust Inc., formerly known as ARC Healthcare Trust II, is a non-traded real estate investment trust 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.
The REIT reportedly terminated its offering in November 2014 after raising approximately $2.2 billion in investor equity.
According to filings with the SEC, on April 3, 2020, Healthcare Trust, Inc. (HTI) announced that its board of directors announced an estimated NAV per share of $15.75 as of December 31, 2019. This marks a 10% decline from the previous estimated NAV per share of $17.50 per share as of December 31, 2018.
HTI reportedly did not provide any narrative related to the NAV decline in its disclosure. According to FactRight, HTI reportedly over distributed (based on FFO) approximately $0.44 per share. HTI also noted $56 million (approximately $0.60 per share) in impairment charges related to decreases in the value of its real estate holdings.
The company recently issued $40 million in Series A Cumulative Preferred Stock (NASDAQ: HTIA) which has recently traded at discounts, in light of the COVID-19 outbreak, to its liquidation preference of $25.00 per share. HTIA shares closed at $19.20 per share on April 9, 2020, a 23% discount to liquidation preference, according to FactRight.
More Bad News for Investors: Liquidity Problems
Unfortunately for investors, Comrit Investments 1 LP, a Tel Aviv-based investment fund, extended an unsolicited tender offer to purchase up to 5 million shares of Healthcare Trust Inc., for $8.61 per share. The offer reportedly expires on April 30, 2020.
This may be at a significant loss to investors, as the original offering price was $25.00 per share.
Update on February 25, 2021 – Secondary Sales Price Continues to Decline
According to Central Trade and Transfer, a secondary market for non-traded REITs, shares of HTI were recently sold for $5.00 per share.
The White Law Group continues to investigate securities fraud claims involving broker-dealers who may have unsuitably recommended Healthcare Trust Inc. (HTI) to investors. Investors looking to sell non-traded REITs, like Healthcare Trust Inc., often have difficulty finding a buyer, and can suffer significant losses on the sale.
Your financial advisor has a responsibility to perform due diligence on any investment before recommending it to you. If your advisor unsuitably recommended HTI and you lost money, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claims against the brokerage firm that sold you the investment.
For a free, no obligation consultation with a securities attorney, please contact the offices of The White Law Group at 1-888-637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois.
FINRA provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors.