National Healthcare Properties: Investor Lawsuits and Liquidation

National Healthcare Properties (fka Healthcare Trust Inc.) Lawsuits and Liquidation Update

The White Law Group continues to investigate potential FINRA arbitration lawsuits involving National Healthcare Properties, Inc., formerly known as Healthcare Trust Inc., and whether brokerage firms improperly recommended this non-traded healthcare REIT to investors. Many claims arise from allegations of unsuitable investment recommendations, inadequate risk disclosures, and misrepresentations regarding liquidity, particularly for retirees and income-oriented investors.

Although the company has recently announced governance reforms and financing initiatives, many investors remain concerned that these changes come after years of declining net asset value (NAV), limited liquidity, and structural risks inherent in non-traded REITs.

Investment Losses? Contact us now for a free consultation.

New Governance and Financing Developments (January 2026 Update)

In January 2026, National Healthcare Properties reportedly announced several corporate governance changes aimed at increasing accountability to stockholders. Most notably, the company approved a transition to a fully declassified board, meaning all directors will stand for election annually beginning with the 2026 annual meeting. To implement the change, four directors whose terms were not set to expire tendered conditional resignations and were immediately re-elected, ensuring all board seats will be subject to shareholder vote at the same time. The board also expanded from six to seven members and appointed a new independent director as chair of the audit committee.

The REIT also accelerated the expiration of its shareholder rights plan, terminating the agreement in January 2026 rather than its originally scheduled May 2026 expiration. This move removes a key anti-takeover protection and could make the company more accessible for strategic transactions. Additional governance updates include proxy access for long-term shareholders, consolidation of board committees, and an opt-out from certain provisions of Maryland’s Business Combination Act.

From a financial standpoint, National Healthcare Properties recently secured a $550 million senior unsecured credit facility, replacing a prior $330 million secured loan. The new facility includes both a revolving line of credit and a term loan, with an option to expand borrowing capacity subject to lender approval. While the company has also named a new chief financial officer with healthcare REIT experience, these developments do not resolve past performance issues or eliminate investor losses tied to declining NAV, illiquidity, and prior sales practices.

While these developments may improve corporate flexibility, they do not eliminate prior investor losses or resolve questions about the suitability of the original recommendations made to retail investors.

The Problem with a Reverse Stock Split

National Healthcare Properties executed a 4-for-1 reverse stock split after reporting a $139 million net loss for the first half of 2024, largely driven by $98.2 million in termination fees associated with the internalization of management. Around the same time, the board reduced the company’s per-share NAV to $13, down from $14 in 2022. Shares were originally sold to investors at $25 per share.

Reverse stock splits do not improve the underlying value of an investment. Instead, they often signal financial distress and may create the illusion of stability by increasing the per-share price while masking deeper balance-sheet issues. For non-traded REIT investors, reverse splits frequently coincide with continued secondary-market value erosion and heightened liquidity constraints.

In this case, the split reduced the number of outstanding shares, potentially making an already illiquid investment even harder to sell on the limited secondary market available to non-traded REIT investors.

See: Hospitality Investors Trust Inc. (HIT REIT) Files Chapter 11 Bankruptcy 

National Healthcare Properties – Risks and Liquidity Problems

National Healthcare Properties focuses on healthcare-related real estate, including medical office buildings and senior housing operating properties. The REIT was originally sponsored by American Realty Capital, now known as AR Global, a platform associated with multiple non-traded REITs that have delivered mixed or poor outcomes for investorsfollowing a widely publicized accounting scandal involving sponsor-affiliated entities.

Despite recent corporate changes, investors continue to face familiar challenges:

• Shrinking or stagnant NAV

• Uncertainty around distributions

• Extended holding periods

• Limited or suspended share-repurchase programs

Unlike publicly traded REITs, non-traded REITs restrict redemption opportunities, and investors often must rely on thinly traded secondary markets, where shares may sell at steep discounts to stated NAV.

1. What is National Healthcare Properties (formerly Healthcare Trust Inc.)?
   National Healthcare Properties, formerly known as Healthcare Trust Inc., is a non-traded real estate investment trust (REIT) focused on healthcare-related real estate such as medical office buildings and senior living facilities. It was previously sponsored by American Realty Capital (now AR Global).
2. Why are investors filing lawsuits related to this REIT?
   Many investors allege that brokers misrepresented the REIT as a safe or income-producing investment. Issues such as lack of liquidity, declining net asset value (NAV), and poor performance have led to significant losses, prompting FINRA arbitration claims.
3. What is a reverse stock split, and why is it a red flag?
   A reverse stock split reduces the number of outstanding shares while proportionally increasing the share price. Although it doesn’t change the overall value of the investment, it often signals financial distress and may decrease investor confidence.
4. What is the current value of shares compared to the original offering price?
   Shares were initially offered at $25.00 per share. Recent secondary market sales have seen some shares priced as low as $2.15, representing substantial losses for investors.
5. Are non-traded REITs like this one risky?
   Yes.Non-traded REITs are illiquid, high-commission investments that are generally suitable only for long-term investors with a high risk tolerance. They may not be ideal for retirees or those requiring immediate access to funds.
6. Can I join a class action lawsuit against National Healthcare Properties (Healthcare Trust Inc.)?
   While class action lawsuits are an option, investors with significant losses (typically over $100,000) may be better served by filing an individual FINRA arbitration claim for a potentially greater recovery.
7. How do I know if I have a case against my broker or brokerage firm?
   Suppose your financial advisor failed to disclose the risks of investing in Healthcare Trust Inc. or recommended it without regard to your financial situation or objectives. In that case, you may have a valid claim. A free consultation with a securities attorney can help determine this.
8. What is FINRA arbitration?
   FINRA arbitration is a legal process that allows investors to resolve disputes with brokerage firms and financial advisors. It is typically faster and less costly than traditional litigation.
9. How much does it cost to file a FINRA arbitration claim?
   Most law firms handling these claims, including The White Law Group, work on a contingency fee basis. That means you don’t pay legal fees unless we recover money on your behalf.
10. How do I get started if I believe I’ve been wronged?

Call The White Law Group at 888-637-5510 for a free consultation to discuss your potential case involving National Healthcare Properties and explore your legal options.

About The White Law Group 

The White Law Group, LLC is a national law firm specializing in securities fraud, arbitration, investor protection, and compliance, dedicated to helping investors in claims across all 50 states against their financial professionals or brokerage firms. Since the firm launched in 2010, it has handled over 800 FINRA arbitration cases.        

Our firm represents investors in all types of securities-related claims, including those involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, unauthorized trading, and many others.

With over three decades of experience in securities law, The White Law Group has the expertise to help investors recover their losses.

Investment Losses? Contact us now for a free consultation!