The board of Healthcare Trust Inc., a publicly registered non-traded real estate investment trust sponsored by AR Global, has approved a $20.25 net asset value per share of the company’s common stock as of December 31, 2017.
The valuation represents a decrease of 5.6 percent compared to last year’s NAV per share of $21.45. Shares were originally sold for $25.00 each.
The NAV per share is based on the estimated fair value of the company’s assets, less the estimated fair value of its liabilities, divided the number of shares outstanding.
Healthcare Trust engaged Duff & Phelps LLC, an independent third-party real estate advisory firm, to assist with the valuation which was performed within Investment Program Association guidelines. Duff & Phelps provided an estimated range of $18.38 – $20.55 per share on a fully diluted basis, with a midpoint of $19.49 per share.
The company recently lowered its annual distribution rate from $1.45 to $0.85 per share. In approving the $20.25 NAV per share, the independent directors considered the negative effect of previously paying distributions that exceeded cash flows from operations would be significantly less in future following the recent distribution rate decrease.
Healthcare Trust invests in multi-tenant medical office buildings and owns an 8.4 million-square-foot portfolio of 164 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.