NorthStar Healthcare Income Inc., a publicly registered, non-traded real estate investment trust, has lowered its estimated net asset value to $6.25 per share, as of June 30, 2019. The REIT previously reported a $7.10 NAV per share, as of June 30, 2018.
The company engaged Robert A. Stanger & Co. Inc., a third-party independent valuation and consulting firm, to assist with the valuation, which is based on the estimated value of NorthStar Healthcare’s assets, less the estimated value of its liabilities, divided by the number of shares outstanding as of June 30, 2019.
Stanger conducted an appraisal for 60 healthcare properties and relied upon third-party appraisals for 15 other properties. As of June 30, 2019, the estimated value of the properties was $1.99 billion, compared with a total cost, including purchase price, deferred costs, and other assets, of $2.16 billion.
The REIT’s four joint venture investments had an estimated value of $488.7 million, compared with a total equity contribution of $511.1 million.
The REIT’s healthcare debt investment matures on January 30, 2021 was equal to its current unpaid principal balance of $75 million.
In total, the estimated value of NorthStar Healthcare’s properties, joint venture investments and healthcare debt investment was $2.56 billion, an approximate 6.8 percent decrease in value compared to the total cost.
Stanger estimated the NAV per share range of $5.93 to $7.22 per share.
NorthStar Healthcare suspended monthly distribution payments to stockholders in February 2019, after reducing its distribution rate in December 2017 from 6.67 percent to 3.31 percent on its $10.20 final offering price. Shares originally sold for $10.00.
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 November 7, 2019, raised total gross proceeds of $2 billion, including $232.6 million through its distribution reinvestment plan. The REIT completed its follow-on offering on January 19, 2016.