NorthStar Healthcare Income Inc. – Decreases NAV again
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According to filings with the SEC, NorthStar Healthcare Income Inc. (NHI) announced an estimated Net Asset Value (NAV) per share of $6.25 as of June 30, 2019.
The REIT previously reported a NAV per share of $7.10 per share as of June 30, 2018 and $8.50 per share as of June 30, 2017.
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.
After launching in February 2013, NorthStar reportedly raised total gross proceeds of $2 billion, including $232.6 million through its distribution reinvestment plan, through November 7, 2019. The REIT completed its follow-on offering on January 19, 2016.
Secondary Share Price Indicates Losses for Investors
NorthStar Healthcare Income shares were recently listed for sale on Central Trade & Transfer, a secondary market for private placements, for just $2.50/share. This may indicated significant losses for investors as the original offering price was $10.00/share.
The REIT reportedly suspended monthly distribution payments to stockholders in February 2019, after reducing its distribution rate in December 2017 from 6.67 percent to 3.31 percent on its $10.20 final offering price.
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.
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