NorthStar Healthcare Income, Inc. (Healthcare Income), a public, non-traded REIT, will conduct a follow-on offering of up to $700 million in shares of common stock.
The REIT will offer up to $500 million in shares at an offering price of $10.20 per share through the primary offering and up to $200 million at $9.69 per share through the REIT’s distribution reinvestment plan (DRIP).
Robert A. Stanger & Co., Inc.(Stanger), a third-party independent valuation and consulting firm, assisted with the offering price determination.
Stanger reviewed the REIT’s portfolio and in accordance with the provisions of the Investment Program Association Practice Guideline 2013-01, Valuations of Publicly Registered Non-Listed REITs, calculated the values of Healthcare Income’s assets and liabilities. Capitalization rate trends, leasing rates, and other economic factors were considered as well.
Healthcare Income’s Board based its offering price recommendation on several factors including Stanger’s analysis, estimated offering costs and expenses, and prevailing market conditions among others.
The offering price does not reflect the current or expected value per share. The REIT’s Board considered other factors and costs included in the offering price as to limit this offerings potential to dilute existing stockholder interest.
NorthStar Healthcare Income, Inc. owns a healthcare real estate portfolio consisting of 16 equity investments with a total cost of $942.7 million and four debt investments with a principal amount of $145.9 million.