Healthcare Trust Inc., a publicly registered non-traded real estate investment trust sponsored by AR Global (the successor business to AR Capital), decreased its annual distributions from $1.70 per share to $1.45 per share, effective April 1st, according to a filing with the Securities and Exchange Commission.
The reduction represents a change in the annualized distribution yield, based on the original purchase price of $25.00 per share, from 6.8 percent to 5.8 percent, or a change from 7.6 percent to 6.5 percent based on the most recent estimated net asset value of $22.27 per share, as of December 31, 2015.
Healthcare Trust completed its strategic review in October 2016 and plans to deploy additional capital to purchase healthcare assets and access additional debt sources, according to an investor presentation filed with the SEC. These moves are intended to grow earnings, increase the size of the portfolio, and better position the REIT for a liquidity event, the company said.
The non-traded REIT expects to increase its leverage from 28 percent to roughly 40 percent on a debt to total asset – which it says is more closely aligned with publicly-traded healthcare REITs.
Healthcare Trust invests in multi-tenant medical office buildings and owns an 8.4 million-square-foot portfolio of 163 properties with a total purchase price of $2.3 billion. The company’s primary offering went effective in February 2013 and closed in November 2014 after raising $2.2 billion in investor equity.