This article is going to give you some fundamental information about NorthStar Healthcare Income REIT. You can learn about the company’s net asset value (NAV), investments, and distribution rates. You’ll also learn about the company’s financial stability. You’ll learn about the company’s investments and how they are doing in the market.
This REIT specializes in healthcare-related real estate, including retirement communities, assisted living facilities, and nursing homes. It also invests in rehab clinics and hospitals. Most of its facilities are located in the Mid-West but they do have properties all over the US.
The NorthStar Healthcare Board decided to stop paying its dividends on December 31, 2018. The decision came after a thorough review of the entity’s business, liquidity sources, and capital needs. The board of directors determined that it was prudent to suspend the monthly distributions for 2019, which would be the last year for the company. Investors who depended on this income will be hit especially hard by the announcement. However, there is no reason to panic if NorthStar Healthcare’s income continues to drop.
As with any other investment, NorthStar Healthcare Income REIT is not suitable for every investor. Many investors have lost a substantial amount of money. Many investors were sold this investment by brokers who failed to perform due diligence on the REIT. Because NorthStar Healthcare was not a retail investment, many investors were sold to the company without understanding all of its terms and the risks. The financial advisors sold the investment to investors with a high commission rate and failed to provide any evidence of its potential for profit.
Haselkorn & Thibaut, investment fraud attorneys, are currently representing clients who purchased Northstar Healthcare Income in lawsuits (FINRA Claims) to help them recover losses. Â For a free consultation, and to discuss your options for recovering your losses, contact them at 1888-614-9356.
NorthStar Healthcare Investments
If you are interested in investing in real estate, you may want to consider investing in NorthStar Healthcare Income REIT. This non-traded REIT invests in healthcare-related properties. Its primary focus is on senior housing, such as nursing homes and assisted living communities. NHI also invests in hospitals, rehab clinics, and other healthcare-related facilities. The company operates through different segments such as: senior living, health care services, medical office buildings, and hospitals.
The risks of investing in NorthStar Healthcare Income Investments are numerous. The investment has experienced substantial losses, as investors cannot easily sell or buy shares. Furthermore, NorthStar Healthcare’s non-traded REIT no longer pays dividends, which was contrary to the representations made by Financial Advisors when the investment was made. In addition, FINRA has increased its scrutiny of REIT marketing. Therefore, it is important to seek legal advice before investing in NorthStar Healthcare Investments.
While NorthStar Healthcare raised $2 billion in equity funding between 2013 and 2018, it failed to achieve its goal of maximizing shareholder returns. In fact, the company incurred losses of $1 billion, which forced it to suspend dividend payments to clients. The board of directors decided to suspend dividend payments to clients in 2019. This was the worst news for investors relying on income from the REIT.
Net asset value
The net asset value of NorthStar Healthcare Income has plummeted by 70% since it launched in February 2013. The REIT’s portfolio comprises 642 properties with a collective value of $2.4 billion. The firm has been able to repay investors who suffered losses due to the recent deterioration in NHI’s stock price. However, it may not be the best option for investors looking to invest in healthcare real estate.
Investors should not invest in this REIT unless they are knowledgeable about the risks involved. Many brokers failed to disclose significant risks in their recommendations, which could lead to a monetary loss. Fortunately, there is an attorney who can review your case free of charge. In addition, you can rest assured that all of our cases are handled on a contingency fee basis, which means we can get you back your money in no time.
Investors should also consider the liquidity of this REIT. Investors may participate in third-party tender offers, or sell their shares in the secondary market. However, investors should consider that the net asset value of NorthStar Healthcare Income will fall even more in the near future. As of now, shares of the company are selling at around $2.50 per share, which implies that most investors sold their shares at a loss.
Distribution rates
If you have been considering buying shares of NorthStar Healthcare Income, then you are not alone. A lot of investors have experienced the same problems. Many brokers failed to disclose the major risks of investing in NorthStar. Listed below are some things that you should know before investing in NorthStar Healthcare Income. If you are considering investing in NorthStar Healthcare Income, read on to find out more about this company. Read on to discover more about NorthStar Healthcare Income’s distribution rates.
If you have owned shares of NorthStar Healthcare, Inc., you may be wondering what is going on. During the past couple of years, you may have watched its share value plummet. However, in recent months, the company has changed its distribution rates from 6.67% to 3.31%. This is unfortunate for NorthStar Healthcare investors as they were expecting to receive some form of return on their investment. Despite the recent news, the company still continues to face a number of legal issues.
Several investors sold their shares before the REIT’s crash. Many investors bought the shares in NorthStar Healthcare because brokers didn’t do proper due diligence on them. However, NorthStar Healthcare was never suitable for retail investors. Many people were suckered into buying the shares of this company because they were told it was a “safe” REIT that would make them money. It’s no wonder so many investors are disappointed.
Justin Chang resigns
Former chief executive officer of NorthStar Healthcare Income Inc., Justin Chang, has resigned after being appointed chairman. This move comes as a shock to investors and NorthStar’s shareholders. Chang left his position due to a conflict of interest. Earlier in the year, he had expressed his displeasure with management and had suggested a new board chairman. In response to this change in leadership, NorthStar announced that it would replace Chang with Richard Welch.
Originally formed to purchase healthcare real estate, NorthStar Healthcare Income Inc. was formed in February 2013. It raised $1.7 billion in an initial public offering, followed by a follow-up offering in January 2016. In December 2021, the company sold 14 communities to Welltower Inc. for $580 million. The company’s property portfolio had grown to over $5 billion as of the third quarter 2021, including properties for retirees and senior citizens. However, NorthStar Healthcare Income recently reduced its payout rate. Earlier this year, REIT suspended its buyback program.
Sale of the portfolio to Highgate and Aurora Health Network
DigitalBridge Group Inc. announced that it has sold its wellness infrastructure business, which includes over 300 senior living facilities, skilled nursing facilities, and other health care assets, for $3.2 billion to a joint venture between Highgate Capital Investments and Aurora Health Network. The transaction is expected to close in early 2022. The transaction involves the sale of equity in the non-traded REIT NorthStar Healthcare Income.
The healthcare-focused investment firm has a long track record of acquiring struggling healthcare companies, including a number of NorthStar Healthcare properties. The company has acquired and managed over 200 hospitals and healthcare facilities across the US. The deal is the largest of its kind in North America and reflects Highgate’s continued commitment to the industry. The sale of this portfolio to the new owners will create value for investors, as well as the facilities themselves.
The company raised $1.7 billion from its IPO in February 2013 and excluded $232.6 million of that amount from the distribution plan. In January 2016, the company completed a follow-on offering. In December 2021, NorthStar Healthcare Income sold 14 communities to Welltower Inc. for $580 million. As of the third quarter of 2021, NorthStar Healthcare Income had $580 million in assets and liabilities and had sold over 500 units of healthcare facilities.
