The board of NorthStar Healthcare Income Inc., a publicly registered non-traded real estate investment trust, approved an $8.50 per share net asset value of the company’s common stock, as of June 30, 2017, according to documents filed with the Securities and Exchange Commission. The new NAV represents a 6.6 percent decrease compared to last year’s valuation of $9.10 per share.
The valuation is based upon the estimated value of NorthStar Healthcare’s assets less the estimated value of its liabilities, divided by the number of shares of common stock outstanding. Robert A. Stanger & Co., a third-party independent valuation and consulting firm, assisted with the valuation process, which was performed in accordance with Investment Program Association guidelines.
The initial analysis provided by Stanger included a range of estimated value per share of $7.65 and $9.39 per share, with a midpoint value of $8.50 per share which was adopted by the board.
Stanger’s final report related to the valuation of NorthStar Healthcare’s assets and liabilities, including its 67 healthcare real estate properties, five joint ventures investments, one healthcare-related commercial real estate debt investment, one healthcare-related commercial real estate security, and 61 healthcare real estate liabilities.
As of June 30, 2017, the estimated value of the healthcare properties was $2.1 billion, compared to a total initial purchase price of $1.9 billion. The estimated value of the joint venture investments was $501.9 million, compared to a total equity contribution of $493.2 million.
The estimated value of the healthcare debt investments was $71.3 million, compared with an outstanding principal amount of $75 million. The estimated value of the healthcare borrowings was $1.27 billion, compared with a total outstanding principal amount of $1.31 billion.
The total estimated value of NorthStar Healthcare’s investments was approximately $2.7 billion, an approximate 8 percent increase in value over the property purchase price, the joint venture equity contribution and the principal amount.
NorthStar Healthcare intends to publish estimated values per share annually, although it may determine to publish revised values more frequently. The REIT’s next estimated value per share will be based upon its assets and liabilities as of June 30, 2018.
NorthStar Healthcare Income was formed to acquire, originate and asset manage a diversified portfolio of equity, debt and securities investments in healthcare real estate. NorthStar Healthcare Income commenced operations in 2013, and from inception through March 2016, raised $1.8 billion in investor equity.