NorthStar Healthcare Income Inc., a publicly traded real estate investment trust, has amended its share repurchase program, effective October 29, 2018, and will only repurchase shares in connection with the death or qualifying disability of a stockholder.
In approving the amended program, the REIT’s board considered the company’s “current financial condition, liquidity sources and capital needs, and believes that limiting repurchases will permit the REIT to preserve and deploy capital in a way that is better aligned with the long-term interests of its stockholders.”
In December 2017, the company reduced its distribution rate from 6.67 percent to 3.31 percent on its $10.20 final offering price. Shares originally sold for $10.00 and have a net asset value of $8.50 each, as of June 30, 2017.
NorthStar Healthcare Income was formed to acquire, originate and asset manage a diversified portfolio of equity, debt and securities investments in healthcare real estate. The company launched in February 2013, and through August 9, 2018, raised total gross proceeds of $2 billion, including $217.8 million through its distribution reinvestment plan. The company oversees a $2.4 billion portfolio of 652 properties as of the second quarter of 2018, according to Summit Investment Research.