Concerned about your investment in NorthStar Healthcare Income Inc.?
According to reports, NorthStar Healthcare Income Inc., a publicly registered, non-traded real estate investment trust, has lowered its estimated net asset value to $3.89 per share, as of June 30, 2020. The REIT’s previous NAV was $6.25 per share, as of June 30, 2019.
The company purportedly engaged Duff & Phelps, a third-party independent valuation and consulting firm, to assist with the valuation, which is based on the estimated value of NorthStar Healthcare’s assets, less the estimated value of its liabilities, divided by the number of shares outstanding as of June 30, 2020.
According to filings with the SEC, as of June 30, 2020, the estimated value of the REIT’s 75 healthcare properties was $1.6 billion, compared with an aggregate cost, including purchase price, deferred costs, and other assets of nearly $2.2 billion.
The estimated value of the REIT’s joint venture investments was $389.3 million, compared with a total equity contribution of $511.1 million.
The REIT’s one healthcare debt investment matures on January 30, 2021 and was valued equal to its current unpaid principal balance of $74.2 million.
The estimated value of the REIT’s healthcare borrowings was $1.4 billion, compared with a gross outstanding principal amount of $1.48 billion.
In total, the estimated value of NorthStar Healthcare’s healthcare properties, joint venture investments and healthcare debt investment was approximately $2.06 billion, an approximate 25 percent decrease in value compared to the total cost.
In April 2020, the board suspended all repurchases under the share repurchase program in order to preserve capital and liquidity. Distributions were suspended in February 2019.
For many investors, this new NAV share price represents a significant loss in value.
The White Law Group continues to investigate the liability that brokerage firms may have for unsuitably recommending that investors invest in Northstar Healthcare.
Brokerage firms have an obligation to recommend only investments that are suitable for the investor in light of the investor’s age, investment experience, net worth, and investment objective. If a brokerage firm unsuitably recommends an investment they can be held responsible for the losses in a FINRA arbitration claim.
