NorthStar Healthcare Income REIT Amends SRP

Oct. 17, 2018 10:12 AM ET
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Securities attorney

Contributor Since 2011

The White Law Group is a national securities fraud, securities arbitration, investor protection and securities regulatory/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida. We pride ourselves on providing quality legal services to our clients and handle securities fraud cases throughout the country. Many of our clients have lost a significant portion of their net worth as the result of the negligence of their financial professional. As such, we believe that part of our role as attorney is to offer a supportive environment for our clients and to provide advice and support as we attempt to recover these investment losses. Dedicated to the representation of investors in claims against their financial professional or brokerage firm, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions. For more information about The White Law Group call our Chicago office at 312-238-9650 or visit us on the web at http://www.whitesecuritieslaw.com.

Summary

  • NorthStar Healthcare Limits SRP & Lowers Distribution Rate.

The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended NorthStar Healthcare Income REIT to investors.

NorthStar Healthcare Income, a publicly traded real estate investment trust, was launched in February 2013 to acquire, originate and asset manage a diversified portfolio of equity, debt and securities investments in healthcare real estate. The company reportedly raised total gross proceeds of $2 billion, including $217.8 million through its distribution reinvestment plan (DRP).

According to SEC filings on October 12, 2018, the board of directors of NorthStar Healthcare Income approved an amended and restated share repurchase program (SRP), which will become effective on October 29, 2018.

Under the amended SRP, NorthStar Healthcare will only repurchase shares in connection with the death or qualifying disability of a stockholder. In approving the Amended SRP, the Board considered various factors, including NorthStar Healthcare’s “current financial condition, liquidity sources and capital needs,” and believes that limiting repurchases will permit the REIT to “preserve and deploy capital in a way that is better aligned with the long-term interests of its stockholders.”

In December 2017, the company reduced its distribution rate from 6.67 percent to 3.31 percent on its $10.20 final offering price. The original offering price for NorthStar Healthcare was $10.00 per share, and currently the shares have a net asset value of $8.50 each, as of June 30, 2017.

The White Law Group has received numerous calls from investors who are concerned about their investment in NorthStar Healthcare Income. If you have suffered investment losses due to a recommendation from your financial advisor, the securities attorneys at The White Law Group may be able to help you.

For a free consultation with one of our securities attorneys, please call the offices of The White Law Group at 888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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