National Healthcare Properties (fka Healthcare Trust Inc.) Lawsuits and Liquidity Concerns – 2026 Update
The White Law Group continues to investigate potential FINRA arbitration claims involving National Healthcare Properties, Inc. (formerly Healthcare Trust Inc.), particularly focusing on whether brokerage firms improperly recommended this non-traded healthcare REIT to retail investors.
Many investor complaints center on unsuitable recommendations, lack of liquidity disclosures, and significant losses tied to declining net asset value (NAV)—especially among retirees and income-focused investors.
New IPO Announcement (April 2026 Update)
In April 2026, National Healthcare Properties announced plans to go public through an initial public offering (IPO), seeking to list on the Nasdaq under the ticker symbol “NHP.”
The company plans to offer up to 38.5 million shares priced between $13.00 and $16.00 per share, targeting up to $616 million in proceeds and implying a valuation of approximately $1.1 billion.
While this may appear to be a positive development, retail investors should understand an important reality:
An IPO does not guarantee recovery of prior losses.
Many investors originally purchased shares at $25.00 per share, and the company’s NAV has already declined significantly over time. Even at the top end of the IPO range, pricing may still reflect substantial losses for early investors.
Additionally, IPO proceeds typically go to the company—not directly to existing shareholders—meaning:
- Investors may still face losses
- Liquidity is not guaranteed immediately
- Market pricing after listing can be volatile
In many cases involving non-traded REITs, a public listing represents a transition event—not a recovery event.
Portfolio and Strategy Overview
As of December 31, 2025, National Healthcare Properties reported approximately $1.7 billion in total assets, including:
- 37 senior housing communities (3,615 units)
- 130 outpatient medical facilities (3.7 million square feet)
- Properties across 29 states
The company continues expanding, including a $64 million acquisition of 13 senior living communities in early 2026.
The REIT also utilizes a RIDEA (operating) structure, meaning it directly participates in property-level operating income rather than relying on traditional lease income. While this structure offers upside potential, it also introduces greater operational risk and income volatility.
See: Hospitality Investors Trust Inc. (HIT REIT) Files Chapter 11 Bankruptcy
The Problem with the Reverse Stock Split
National Healthcare Properties previously executed a 4-for-1 reverse stock split following significant financial losses.
At the same time:
- NAV dropped to approximately $13 per share
- Shares were originally sold at $25 per share
Reverse stock splits do not increase the value of an investment. Instead, they often:
- Signal financial stress
- Mask declining performance
- Reduce share count while maintaining overall loss
For many investors, this event coincided with continued erosion in secondary market value and limited liquidity options.
Ongoing Risks for Retail Investors
Despite the IPO announcement, investors still face familiar non-traded REIT risks:
- Declining or stagnant NAV
- Limited liquidity and redemption options
- Uncertain distributions
- Long holding periods
- Exposure to operational risks (especially with RIDEA structures)
Even after listing, share prices may fluctuate significantly and may not reflect original purchase values.
Why Investors Are Filing Claims
The White Law Group is investigating claims involving allegations that brokers:
- Recommended the investment as safe or income-producing
- Failed to disclose illiquidity risks
- Misrepresented the investment’s risk profile
- Recommended the REIT despite it being unsuitable for the investor’s financial situation
These issues are particularly concerning for retirees and conservative investors who needed liquidity and capital preservation.
FINRA Arbitration: Options for Recovery
Investors who suffered losses may be able to recover through FINRA arbitration, a process used to resolve disputes with brokerage firms.
Compared to class actions, FINRA arbitration may offer:
- Faster resolution
- Potentially higher individual recoveries
- A more direct path to holding brokerage firms accountable
Most securities law firms, including The White Law Group, handle these cases on a contingency fee basis, meaning no upfront legal fees.
FAQs
Does the IPO mean I will recover my losses?
Not necessarily. The IPO price range ($13–$16) is still well below the original $25 offering price, and market performance after listing is uncertain.
Is liquidity guaranteed after the IPO?
No. While listing on a public exchange may improve liquidity over time, share prices can fluctuate and selling at a favorable price is not guaranteed.
What is a reverse stock split and why is it a red flag?
A reverse stock split reduces the number of shares an investor owns while increasing the price per share proportionally. It does not increase the overall value of the investment. In many cases, reverse splits are associated with financial distress, declining performance, or attempts to make a stock appear more stable than it is. For non-traded REIT investors, reverse stock splits can also make an already illiquid investment harder to sell and may signal deeper underlying issues.
About The White Law Group
The White Law Group, LLC is a national securities fraud law firm focused on protecting investors and recovering losses caused by broker misconduct.
The firm has handled 800+ FINRA arbitration cases and represents investors nationwide in claims involving:
- Unsuitable investment recommendations
- Misrepresentation and omissions
- Illiquid alternative investments like non-traded REITs
If you suffered losses in National Healthcare Properties or were advised to invest in this REIT, you may have legal options.
? Call 888-637-5510 for a free consultation.
