Healthcare Trust Inc. Shareholders may have Claims
The White Law Group continues to investigate FINRA arbitration claims involving Healthcare Trust Inc. (ARC Healthcare Trust II) and the liability broker dealers may have improperly recommending it to investors.
Unfortunately for investors it appears that many financial advisors/brokerage firms that sold non-traded REITs such as Healthcare Trust Inc. may have understated or misrepresented the risks and liquidity problems.
Healthcare Trust, Inc. (formerly known as ARC Healthcare Trust II) is a non-traded real estate investment trust (REIT) 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. Healthcare Trust is closed to all new investments.
The REIT, sponsored by American Realty Capital (now known as AR Global), was part of a commercial real estate empire built by investor Nicholas Schorsch that was involved in an accounting scandal several years ago. Unfortunately, American Realty Capital REITs have had less than stellar results for investors. See: Hospitality Investors Trust Inc. (HIT REIT) Files Chapter 11 Bankruptcy
Disappointing Net Asset Value (NAV) per share
The Board of Directors reportedly updated its Net Asset Value per share as of December 31, 2021. According to filings with the SEC, the REIT’s board claims in its latest valuation that the NAV has increased slightly from its previous value of $14.50 to $15.00 per share, yet the independent third-party real estate advisory firm, Kroll LLC indicated that the NAV per share range is actually $13.78 – $15.50, with a midpoint of $14.61 per share.
Previous NAVs per share were $14.50 as of December 31, 2020, $15.75 per share as of December 31, 2019, and $17.50 per share as of December 31, 2018. Shares were originally priced at $25.00 each.
Secondary Sales Price Indicates Losses for Investors
According to one secondary market website, shares of Healthcare Trust Inc. have recently been sold for as low as $5.00/per share. Unfortunately for many investors, it appears that the secondary market price would represent significant losses on their initial capital investment.
Are Non-Traded REITs Suitable for you?
Non-traded REITs are high risk, complex investments and are not suitable every investor. Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance. (Learn more: Are Non-Traded REITs a Safe Bet?)
Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.
High commissions could be a motivating factor for unscrupulous financial advisors to sell the REIT regardless of whether the investment is in line with the client’s investment objectives and profile. Moreover, the total commissions and expenses make it difficult for non-traded REITs to perform in line with the market.
Investigating Potential Lawsuits involving Healthcare Trust Inc.
If you invested in a Healthcare Trust Inc. (ARC Healthcare Trust II) and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.
Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.
With over 30 years of securities law experience, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses. For more information, please visit our website, whitesecuritieslaw.com.
To learn more about the firm’s investigation of Healthcare Trust Inc. please see:
Healthcare Trust Inc. (ARC Healthcare Trust II) Decrease in Value *UPDATED*
Tags: AR Global, ARC Healthcare Trust II NAV, Healthcare Trust Inc. current value, Healthcare Trust Inc. Inc. investigation, Healthcare Trust Inc. Inc. lawsuit, Healthcare Trust Inc. Inc. losses, Healthcare Trust liquidation, Healthcare Trust redemption, HTI buyback, HTI lawsuit, HTI liquidation, HTI losses, HTI recovery options Last modified: May 26, 2023