NorthStar Healthcare Income Announces $3.89 NAV
December 23, 2020
On December 21, 2020, upon the recommendation of the audit committee (the “Audit Committee”) of the board of directors (the “Board”) of NorthStar Healthcare Income, Inc. (“NorthStar Healthcare”), the Board, including all of its independent directors, approved and established an estimated value per share of NorthStar Healthcare’s common stock of $3.89. The estimated value per share as of June 30, 2019, was $6.25. The estimated value per share is based upon the estimated value of NorthStar Healthcare’s assets less the estimated value of NorthStar Healthcare’s liabilities as of June 30, 2020, divided by the number of shares of NorthStar Healthcare’s common stock outstanding as of June 30, 2020. The change represents a 38% drop in NAV per share year-over-year. The information used to generate the estimated value per share, including market information, investment- and property-level data and other information provided by third parties, was the most recent information practically available as of June 30, 2020.
As of June 30, 2020, the estimated value of the Healthcare Properties underlying the $3.89 estimated per share value was $1.60 billion ($1.99 billion as of June 30, 2019), compared with an aggregate cost, including purchase price, deferred costs, and other assets of $2.16 billion (the “Property Purchase Price”).
As of June 30, 2020, the estimated value of the Joint Venture Investments underlying the $3.89 estimated per share value was $389.3 million, compared with an aggregate equity contribution of $511.1 million (the “Joint Venture Equity Contribution”) and an aggregate value of $488.7 million as of June 30, 2019.
Based on the above valuations and estimates and subject to the assumptions and limiting conditions contained in its report, Duff & Phelps estimated the net asset value range per fully diluted common share outstanding of NorthStar Healthcare as of June 30, 2020, from $3.38 to $4.44 per share. Based on its review of the Duff & Phelps report and the analysis of the Advisor, the Audit Committee recommended and the Board approved an estimated value per share of $3.89 as of June 30, 2020.
Share Repurchase Program
Pursuant to the terms of NorthStar Healthcare’s share repurchase program (the “SRP”), shares repurchased would be at a price equal to the lesser of the price paid for the shares, as adjusted for any stock dividends, combinations, splits, recapitalizations or any similar transaction with respect to the shares of common stock, or $3.89, the most recently published estimated value per share of NorthStar Healthcare’s common stock. In April 2020, the Board determined to suspend all repurchases under the SRP effective April 30, 2020, in order to preserve capital and liquidity.
Down From $6.25 Per Share NAV as of June 30, 2019
On December 3, 2019, upon the recommendation of the audit committee of the board of directors of NorthStar Healthcare Income, Inc., the Board, including all of its independent directors, approved and established an estimated value per share of NorthStar Healthcare’s common stock of $6.25. The estimated value per share was based upon the estimated value of NorthStar Healthcare’s assets less the estimated value of NorthStar Healthcare’s liabilities as of June 30, 2019, divided by the number of shares of NorthStar Healthcare’s common stock outstanding as of June 30, 2019.
