Many investors have lost sleep over their National Healthcare Properties investments, and their concerns are very real. These hard-working people watched their investments shrink after the company changed its name from Healthcare Trust Inc.
The drop in per-share net asset value has left investors wondering what to do next. Thankfully, affected investors can take several paths to protect their interests, such as filing FINRA arbitration claims.
The company’s recent 4-for-1 reverse stock split has only added to investors’ worries about where their money is headed.
Haselkorn & Thibaut have opened an investigation National Healthcare Properties, formerly Healthcare Trust. Investors are encouraged to call our experienced investment fraud lawyers for a free consultation on investment loss recovery.
Continue read on about the latest news on National Healthcare Properties.
Key Takeaways
Table of Contents
- National Healthcare Properties saw its net asset value plummet from $25.00 to $2.15 per share by March 2023, leading to widespread investor losses and legal actions.
- The company executed a 4-for-1 reverse stock split in 2024 and changed its distribution policy from monthly to quarterly payments, causing financial strain for many investors.
- Haselkorn & Thibaut is investigating the company’s high commission rates of 7-10% and potential misconduct in investment recommendations to shareholders.
- Investors can seek compensation through FINRA arbitration claims to recover losses from broker misconduct and misleading sales practices.
- The company’s transition from Healthcare Trust Inc. included bringing management in-house by mid-2024 and restructuring its portfolio of medical buildings and senior care facilities.
Overview of National Healthcare Properties
National Healthcare Properties manages a large portfolio of medical buildings and senior care facilities across America. We track their recent shift from Healthcare Trust Inc., which sparked major changes in their business model and investor relations.
Rebranding from Healthcare Trust Inc.
We saw Healthcare Trust Inc. take a bold step in 2024 by changing its name to National Healthcare Properties. This change marks a key shift in the company’s identity to show its focus on healthcare real estate more clearly.
The rebranding effort came right before a major change in how the company runs its business.
Our new name reflects our core mission in the healthcare property sector.
Our team noticed the company made this move as part of its bigger plan to change how it operates. The shift included bringing management in-house by mid-2024, which changed how the company handles its day-to-day business.
These changes set the stage for new ways the company manages its large portfolio of medical buildings and facilities.
Let’s explore the key financial changes that followed this rebranding effort.
Portfolio of healthcare-related real estate
After National Healthcare Properties changed its name from Healthcare Trust Inc., our real estate portfolio grew stronger in the healthcare sector. Our investments span across multiple healthcare properties throughout the United States.
Medical office buildings make up a large part of our assets, creating stable income streams for our investors.
Our seniors housing facilities stand as another key component in our healthcare real estate mix. These properties serve different medical needs and patient care requirements across various locations.
The spread of our assets across different regions helps us manage risk through geographic diversity. Our direct experience with property management shows that medical facilities remain in high demand, making them valuable long-term investments despite market changes.
Key Financial Changes
National Healthcare Properties saw major financial shifts in recent months. We noticed a sharp decline in stock value and changes in distribution policies that raised red flags among investors.
Decrease in per-share net asset value (NAV)
We tracked a steep drop in National Healthcare Properties’ net asset value per share from $25.00 to $14.00 by March 31, 2023. Our analysis shows the NAV continued its downward trend, reaching $13.00 by December 31, 2023.
This decline raises serious concerns about the company’s financial health.
The dramatic fall in NAV from $25 to $13 signals major red flags for investors seeking stable returns.
Market performance data reveals an even more troubling picture, with share prices hitting lows of $2.15. These sharp declines point to major liquidity problems within the company’s real estate portfolio.
Such drops often lead to investor lawsuits as shareholders try to recover their losses.
4-for-1 reverse stock split
The decline in NAV led National Healthcare Properties to take bold action through a stock restructuring plan. Our research shows the company executed a 4-for-1 reverse stock split in 2024 to boost its market position.
This move means investors now own one share for every four shares they previously held.
The reverse stock split aims to make shares more appealing in the marketplace. National Healthcare Properties lawsuit concerns have pushed us to monitor these changes closely. Our team sees this stock adjustment as a direct response to market pressures and an effort to strengthen the company’s trading position.
Change in distribution policy
Following the reverse stock split, National Healthcare Properties made major changes to its distribution policy in 2024. We saw these changes as part of their broader cost-saving measures across the company’s operations.
Our team noticed they shifted from monthly distributions to a new quarterly payment schedule. This move aimed to reduce administrative costs and streamline their financial operations.
We observed that many investors faced direct impacts from these distribution changes. Money now comes less often, which affects regular income planning for shareholders. Several of our clients reported challenges in adjusting their monthly budgets due to this switch.
National Healthcare Properties told us these changes would help maintain long-term financial stability. Yet, we found many stockholders struggled with this new payment timeline.
Complaints and Legal Actions
Haselkorn & Thibaut recently started investigations into National Healthcare Properties due to major stock losses. Many investors filed complaints through FINRA about misleading sales practices and poor investment performance.
Investigation into stock losses
We have seen multiple investigations into National Healthcare Properties’ stock losses after their NAV dropped to $2.15 per share by March 31, 2023. Our team has tracked numerous cases of potential misconduct tied to unsuitable investment recommendations made to investors.
The steep decline in share value has sparked serious concerns about the company’s financial health and management decisions.
Our investment fraud lawyers have started probing into the high commission rates of 7% to 10% charged during initial sales. These fees created clear conflicts of interest between brokers and investors.
Our experience shows that many investors were not fully informed about these charges or the risks involved with this non-traded REIT investment. The investigations aim to uncover if proper disclosures were made and if financial advisors acted in their clients’ best interests.
Investor concerns
Several investors have filed lawsuits against National Healthcare Properties due to significant financial losses. Our team has observed multiple legal actions targeting the company’s sharp NAV decline from $17.50 in 2018 to $13 by late 2023.
Many shareholders feel misled about the investment risks and potential returns. Legal claims focus on the lack of transparency regarding accounting practices and financial reporting methods.
Investor concerns extend beyond the typical risks associated with non-traded REITs. Our analysis shows mounting pressure from shareholders seeking compensation through various legal channels.
The company faces scrutiny over its handling of financial disclosures and corporate decisions. Most complaints center on the substantial drop in share value and its impact on investor portfolios.
Some investors report difficulties selling their shares at fair market prices due to illiquidity issues.
FINRA arbitration claims
Many investors now turn to FINRA arbitration after facing losses from broker misconduct. We see FINRA arbitration as a faster and less expensive option compared to traditional court battles.
Our legal team guides investors through this process to recover their investment losses from broker-dealers who misrepresented investment risks.
FINRA arbitration offers a direct path to address claims against financial professionals. We help investors file these claims through FINRA’s dispute resolution system. Most brokers must participate in FINRA arbitration as part of their membership requirements.
Our experience shows that investors need strong legal support to present their cases effectively in these proceedings. The success of claims often depends on proving broker-dealer misconduct or misrepresentation during investment sales.
Risks for Investors
Investors face major risks with National Healthcare Properties due to its limited trading options and dropping share values, making it tough to sell shares when needed – read on to learn more about protecting your investment.
Illiquidity and high-risk investment
Non-traded REITs carry major risks that we’ve seen affect many of our clients. Our experience shows that investors must hold these investments for up to 10 years without easy ways to sell.
The lack of public trading makes it hard to know the real value of these investments at any time.
Most non-traded REITs charge steep upfront fees between 9% to 10% of the investment amount. This high cost cuts into potential returns right from the start. We’ve noticed that many people struggle to sell their shares later, even at much lower prices than they paid.
The long holding periods lock up money that could be used for other opportunities or needs.
Impact of NAV decline on secondary sales
The sharp drop in liquidity leads us directly to the severe impact on secondary market sales. National Healthcare Properties’ net asset value fell from $25.00 to $14.00 per share by March 31, 2023.
This dramatic decline pushed secondary market prices even lower, reaching just $2.15 per share.
We see investors facing major losses in the secondary market due to this NAV decline. The gap between the stated NAV and actual trading prices creates a tough situation for shareholders who need to sell their holdings.
Many investors must accept deep discounts to exit their positions, often losing more than 90% of their initial investment based on the $2.15 trading price.
Challenges with non-traded REITs
Non-traded REITs present unique hurdles for investors due to their strict holding rules. We notice most investors must keep their money locked up for 10 years before they can sell their shares.
This long holding period makes it hard to access funds during emergencies or market changes. Our research shows these investments also charge steep upfront fees between 7% to 10%, which takes a big bite out of initial investments.
Many investors face issues with how non-traded REITs handle distributions. We found that monthly or quarterly payments might not come from actual property income. Instead, these REITs often use pooled investor funds to make distributions, which can mask the true performance of the properties.
This practice raises red flags about the investment’s long-term stability and makes it harder for us to assess its real value. Some investors don’t realize their regular payments come from other investors’ capital rather than property earnings.
Steps Toward Liquidation
National Healthcare Properties has started its liquidation process with clear steps to sell its assets. We expect this process to affect investor returns through asset sales and final distributions.
Understanding the liquidation process
The liquidation process marks a crucial phase for real estate investment trusts facing financial challenges. We need to grasp the key steps involved in this complex financial procedure to protect our investments.
- Board members must vote to approve the liquidation plan before any action starts
- Shareholders receive detailed information packets about the proposed liquidation steps
- Professional appraisers conduct fresh valuations of all property assets in the portfolio
- Real estate brokers list properties for sale in the open market
- Each successful property sale adds cash to the distribution pool
- Financial advisors calculate net proceeds after paying off debts and expenses
- Legal teams review and settle any pending claims or lawsuits
- Company accountants prepare final tax documents and financial statements
- Distribution checks go out to shareholders based on their ownership stakes
- The company files final documents with regulatory agencies
- Stock exchange officials process the formal delisting request
- Transfer agents cancel all outstanding shares after final payments
Let’s explore the specific options available to affected investors in this situation.
Potential impact on investor returns
Liquidation plans can lead to major changes in investor returns. We see direct effects on our clients’ portfolios as NAV values drop from $25.00 to $2.15 per share. Many investors face losses above 80% of their initial investment, creating serious financial strain.
Our experience shows future distributions will shift from cash payments to share-based payments. This change brings new risks for investors who need regular income streams. Stock-based distributions might not offer the same value or flexibility as cash payments, especially during market downturns.
Investors must prepare for reduced liquidity and limited options to sell their shares at fair prices.
Options for Affected Investors
Investors who lost money in National Healthcare Properties can explore several legal paths to recover their losses. Our law firm offers investors across the US offer free case reviews to assess your situation and guide you through the best legal steps.
Seeking legal advice
Legal advice plays a vital role in protecting investor rights during securities fraud claims. We recommend consulting with attorneys who focus on FINRA arbitration and securities law.
We can guide you through the process of filing claims against National Healthcare Properties. Our experience shows that securities fraud lawyers help evaluate losses and determine the best legal path forward.
Filing FINRA arbitration claims requires specific knowledge of securities regulations and procedures. Legal teams handle paperwork, gather evidence, and represent your interests throughout the entire process.
Role of loss recovery lawyers
Loss recovery lawyers play a vital role in helping investors get their money back from failed investments. Our team specializes in securities litigation to protect investors who face losses from mismanaged REITs and other investment products.
We focus on building strong cases through detailed analysis of financial records and company practices.
Our legal experts guide investors through each step of the recovery process. This includes filing FINRA arbitration claims, joining class action lawsuits, or pursuing individual legal action.
Many investors have benefited from our direct experience in handling deceptive practice cases and investment fraud claims. The legal process becomes clear and manageable with proper guidance from securities attorneys who understand these specific challenges.
Broader Implications for Investors
Corporate governance issues in REITs raise red flags for smart investors who want to protect their money. The recent problems with National Healthcare Properties show why investors must check management practices and company structures before buying shares.
Corporate governance concerns
We notice major shifts in the Board’s structure at National Healthcare Properties. Recent changes include Candice W. Todd’s new role as Audit Committee chair starting January 8, 2025.
The Board aims to remove its classified structure through changes to the Articles of Incorporation in 2025. These moves signal efforts to improve oversight and accountability.
Our analysis shows these governance updates could bring better transparency for investors. The Board’s decision to restructure suggests a response to past concerns about management practices.
Lessons from REIT investment risks
The sharp drop in National Healthcare Properties’ share price from $25.00 to $2.15 serves as a stark lesson for REIT investors. Our experience shows that non-traded REITs carry major risks due to their lack of market pricing and limited exit options.
Many investors face large losses through these investments.
Stock splits and NAV changes often signal deeper issues in REITs that need careful attention. The 4-for-1 reverse stock split at National Healthcare Properties points to serious financial challenges.
Smart investors must study these warning signs before putting money into similar real estate investments. Legal actions through FINRA arbitration offer some protection, but prevention beats cure in REIT investing.
Conclusion
Investors facing losses from National Healthcare Properties need strong legal support to protect their interests. Legal action through FINRA arbitration offers a path for investors to recover their investments.
Our experience shows that quick action helps maximize chances of successful claims against broker misconduct. Smart investors must stay alert to warning signs and seek expert guidance before losses grow too large.
