At $15.75, the NAV of Healthcare Trust Inc. (HTI) as of 31st December 2019 announced by its board of directors, and as per filings with the Securities and Exchange Commission (SEC), represented a 10% decline over the NAV of $17.50 exactly a year earlier.
While HTI has not provided any explanation for the decline, according to Factright, over the distribution of $0.44 per share (based on FFO, funds from operations) appears to be a contributor. There is also an impairment charge of $56 million which approximates to $0.60 per share that further depresses the valuation.
Are you facing losses arising from the steep erosion in the value of HTI? You should know that brokerage firms are liable if investors suffer losses arising from unsuitable investment recommendations. The Financial Industry Regulatory Authority (FINRA) provides a forum for arbitration of disputes.
Haselkorn & Thibaut is actively investigating fraud claims against broker-dealers for unsuitably recommending HTI investments to clients, can help you with the filing of a FINRA arbitration claim. With offices in New York, Texas, North Carolina, Arizona, and Florida, we help investors nationwide with cases of national securities fraud, securities arbitration. For a free, private, no-obligation consultation with a securities attorney, you can reach us at 1 888-628-5590 .
Formerly ARC Healthcare Trust, HTI is a non-traded real estate investment trust (REIT). After having raised $2.2 billion from investors, it reportedly closed its offering in November 2014. It has pursued a strategy of focusing on healthcare assets like seniors housing and medical office buildings, in pursuit of its objective of acquiring “a diversified portfolio of real estate properties,” according to their website.
Factright has also reported that Series A Cumulative Preferred Stock (NASDAQ: HTIA), $40 million worth of which was recently issued by the company, closed at $19.20 per share on 9th April 2020, a 23% discount against the liquidation preference price of $25.00 per share, apparently a victim of the Covid-19 outbreak.
The REIT is also saddled with liquidity challenges. An unsolicited offer for the purchase of up to 5 million shares has been made by a Tel Avis-based fund, Comrit Investments 1 LP, at $8.61 per share, with an expiry date of 30th April 2020.
Measured against an initial offer price of $25.00 per share, this represents a steep erosion of value for shareholders. Non-traded REITs, like HTI, can often be difficult to sell as there is neither a market nor a transparent pricing mechanism, leading to losses. Contact us for a free portfolio review.