Investors in Healthcare Trust, Inc. (“HTI”), may have FINRA arbitration claims, if their investment was recommended by a financial advisor who lacked a reasonable basis for the recommendation, or if the nature of the investment was misrepresented by the stockbroker or advisor.
HTI was incorporated on October 15, 2012, as a Maryland corporation that elected to be taxed as a real estate investment trust (REIT). As a publicly registered non-traded REIT, HTI was permitted to sell securities to the investing public at large, including numerous unsophisticated retail investors who bought shares upon the recommendation of a broker or money manager. HTI terminated its offering in November 2014 after raising approximately $2.2 billion in investor equity. HTI invests in multi-tenant medical office buildings and owned a portfolio of 191 properties, as of the fourth quarter of 2018.
The Board of HTI has approved a $17.50 net asset value per share of the company’s common stock as of December 31, 2018, representing a decrease of nearly 13.6 percent compared with HTI’s December 31, 2017 estimated NAV per share of $20.25. HTI originally sold shares to the public for $25.00 each. HTI attributed the drop in its reported NAV to the effect of paying distributions to the company’s stockholders that net exceeded cash flows from operations and a $30.5 million decrease in the estimated value of its real estate assets compared to last year. While this lower $17.50 estimated NAV is bad news for investors, the worse news may be that transactions in the limited secondary market have reportedly taken place at $12.75 to $13.00 a share- suggesting that HTI shares may be worth even less than the estimated NAV.