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Northstar Healthcare Income Inc. NAV Continues To Decline

Mar. 01, 2021 1:43 PM ET
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  • How to recover losses in Northstar Healthcare Income Inc., a Non-traded Real Estate Investment Trust.

The White Law Group continues to investigate potential securities claims involving Northstar Healthcare Income Inc., an non-traded REIT, since December 2017, when it reduced its distribution rate to 3.31% from 6.67%. Its value has continued to decline since 2017 from $8.50 per share to the current estimated value of $3.89 per share according to filings with the SEC.

NorthStar Healthcare Income was reportedly formed to acquire, originate and asset manage a diversified portfolio of equity, debt and securities investments in healthcare real estate, according to its website. The company launched in February 2013, and through November 8, 2018, reportedly raised total gross proceeds of $2 billion, including $225.3 million through its distribution reinvestment plan.

The REIT notes that 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.

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.

The valuation is reportedly 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.

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.

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.

FINRA’s arbitration forum is a way for investors to resolve disputes if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment.

If you are concerned about investment losses in Northstar Healthcare Income Inc., the securities attorneys at the White Law Group may be able to help you, Please call 888-637-5510 for a free consultation. The White Law Group is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois. For more information on the firm please visit www.whitesecuritieslaw.com.

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