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 a stockbroker or advisor.
HTI, a publicly registered non-traded real estate investment trust, announced that it has amended the company’s distribution policy and share repurchase program to end cash distributions and suspend redemptions. Future distributions to shareholders will be paid in shares of common stock instead of cash, and share repurchases under the REIT’s share repurchase plan (or “SRP”) were suspended. These announcements leave investors with no cash income from the REIT, and limited options if they wish to sell shares.
HTI states that it made these changes to preserve liquidity and maintain additional financial flexibility in light of the COVID-19 pandemic. In a filing with the U.S. Securities and Exchange Commission (“SEC”), HTI indicated that any future distributions, if and when declared, will be paid on a quarterly basis in arrears in shares of common stock valued at the net asset value per share. The number of shares paid will continue to be based on the prior cash distribution rate of $0.85 per share per year, the company said.