NorthStar Healthcare Income Revises Net Asset Value

The board of NorthStar Healthcare Income Inc., a publicly registered non-traded real estate investment trust sponsored by NorthStar Asset Management Group Inc. (NYSE: NSAM), approved a $9.10 per share net asset value of the company’s common stock, as of June 30, 2016, according to documents filed with the Securities and Exchange Commission. The new NAV is an increase of 5.4 percent compared to the previous valuation of $8.63 per share, as of December 31, 2015.

The valuation was calculated with the assistance of the REIT’s advisor, NSAM J-NSHC Ltd, and Robert A. Stanger & Co., a third-party independent valuation and consulting firm. The value per share is based upon the estimated value of NorthStar Healthcare’s assets less the estimated value of its liabilities, divided by the number of shares of common stock outstanding.

The initial analysis provided by Stanger included a range of estimated value per share of $8.47 and $9.70 per share, with a midpoint value of $9.10 per share. The advisor and the board’s audit committee recommended that board adopt Stanger’s midpoint value estimate, or $9.10 per share.

Stanger’s final report related to the valuation of NorthStar Healthcare’s assets and liabilities, including its 61 healthcare real estate properties, five joint ventures investments, four healthcare-related commercial real estate debt investments and 24 healthcare real estate liabilities.

As of June 30, 2016, the estimated value of the healthcare properties was $2 billion, compared with a total initial purchase price of $1.8 billion. The estimated value of the joint venture investments was $538.4 million, compared with a total equity contribution of $505.8 million.

The estimated value of the healthcare debt investments was $192.9 million, compared with an aggregate outstanding principal amount of $193.5 million. The estimated value of the healthcare borrowings was $1.21 billion, compared with a total outstanding principal amount of $1.23 billion.

The total estimated value of NorthStar Healthcare’s investments was approximately $2.7 billion, an approximate 7.1 percent increase in value over the property purchase price, the joint venture equity contribution and the principal amount.

NorthStar Healthcare intends to publish estimated values per share annually, although it may publish revised values more frequently.

NorthStar Healthcare Income was formed to acquire, originate and asset manage a diversified portfolio of equity, debt and securities investments in healthcare real estate. NorthStar Healthcare Income commenced operations in 2013, and from inception through March 2016, raised $1.8 billion in investor equity.

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