NorthStar Healthcare Income, Inc. (“NorthStar Healthcare”) a public, non-traded REIT, has lowered its estimates net asset value or “NAV” to $3.89 a share. Shares were originally sold for $10.00 a share. NorthStar Healthcare had last reported a $6.25 NAV per share, as of June 30, 2019.
NorthStar Healthcare reportedly engaged Duff & Phelps, 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, 2020. Based on the valuation, the estimated value of NorthStar Healthcare’s healthcare properties, joint venture investments and healthcare debt investment was reportedly approximately $2.06 billion, or about 25 percent lower than the properties’ total cost.
In April 2020, NorthStar Healthcare’s board suspended all repurchases under the share repurchase program in order to preserve capital and liquidity. Distributions were suspended in February 2019.