The board of Healthcare Trust Inc., a publicly registered non-traded real estate investment trust sponsored by AR Global, has approved a $15.75 net asset value per share of the company’s common stock, as of December 31, 2019.
The company’s previous NAV per share was $17.50 as of December 31, 2018, and shares were originally priced at $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.
“The advisor believes that it is too early to tell the nature and scope of any impact the ongoing coronavirus pandemic may have on the company or the estimated per share NAV as of December 31, 2019…,” Healthcare Trust said in a filing with the Securities and Exchange Commission. “As a result, the advisor believes that there have been no changes between December 31, 2019 and the date of this filing that would materially impact the overall estimated per-share NAV as of December 31, 2019.”
Duff & Phelps LLC, an independent third-party real estate advisory firm, assisted with the valuation and provided an estimated NAV per share range of $14.33 – $16.33, with a midpoint of $15.30 per share – which is $0.45 lower than the declared NAV per share.
The REIT’s real estate assets have an estimated value of $27.91 per share and include an adjustment of $0.45 per share above the midpoint of the range provided in the Duff & Phelps report.
The real estate assets decreased by ($0.21) per share compared to last year, due to a 3.5 percent decrease below their original investment cost of $2.7 billion, as well as subsequent capital expenditures of $53 million at the properties.
Other major contributors to the lower NAV included the fair value of the company’s debt ($0.92), and the liquidation value of 1.6 million shares of its Series A preferred stock ($0.43).
The REIT noted that the valuation was performed in accordance with practice guidelines established by the Institute for Portfolio Alternatives (formerly the Investment Program Association).
Healthcare Trust invests in multi-tenant medical office buildings and owned a portfolio of 193 properties, as of the fourth quarter of 2019. The company’s primary offering was declared effective by the SEC in February 2013 and closed in November 2014 after raising $2.2 billion in investor equity.