NorthStar Healthcare Income, Inc, a publicly registered, non-traded real estate trust focused on a diverse portfolio of healthcare real estate investments, announced that it has lowered the estimated net asset value of its common stock to $7.10 per share.
The company engaged Robert A. Stranger & Co., Inc, an independent third-party valuation firm, to assist with determining an estimated per share value of its common stock as of June 30, 2018.
Stranger determined an appraised value range on 27 of the 79 directly-owned properties, one debt investment, and six joint ventures in NorthStar Healthcare’s real estate portfolio. While it relied upon appraisal reports prepared by other third-party appraisal firms for 50 properties, and the contractual sale price of two pending asset sales.
As reported last year, NorthStar Healthcare’s previous net asset value of $8.50 per share was based on 67 healthcare real estate properties, five joint venture investments, one debt investment, and 61 healthcare real estate liabilities.
The company sited numerous factors which contributed to the decline in net asset value, including occupancy challenges in select markets, increased labor costs, restructuring leases, replacing tenants, and capital expenditures while continuing to make consistent distributions to its shareholders.
Ronald Jeanneault, vice chairman, chief executive officer and president of Northstar Healthcare commented, “Although we are disappointed in the decline in estimated per share value, we believe that the recently completed operator transitions, capital reinvested in our portfolio and additional resources added to the advisor’s asset management team will facilitate the continued effort to enhance the performance of our investments.”