Healthcare Trust, Inc. (HTI) Investigations
If you invested in the Healthcare Trust, Inc. (“HTI”), you may have a claim for damages if the investment was not consistent with pre-established goals, objectives and risk profile or if your advisor did not perform proper due diligence or misrepresented the investment. Claims such as this are contractually obligated to be filed with the Financial Industry Regulatory Authority (FINRA).
Our securities litigation attorneys have nearly two decades of experience filing and litigating FINRA arbitration claims and have recovered losses for hundreds of individual investors nationwide.
Background on Healthcare Trust, Inc.
HTI, is a registered, non-traded real estate investment trust (REIT). This means the shares do not trade on an active exchange and therefore are illiquid. Meaning, investors cannot readily sell the investment except on the secondary market at a substantial discount to the sponsor’s stated value. Further, the HTI sponsor recently notified shareholders that future distributions will be paid in shares of common stock instead of cash and share repurchases under the REIT’s share repurchase plan have been suspended. These announcements have left investors with no dividend income and very limited options to liquidate their shares.
At inception, shares of HTI sold for $25.00/share. The sponsor indicated they are now worth approximately $14.50/share and are currently traded on the secondary market in the $5.00 – $5.35 range. As such, investors in Healthcare Trust, who wish to liquidate their investment will incur a substantial loss.
Non-traded REITs pose many risks that are often not readily apparent to retail investors, or adequately explained by the financial advisors and stockbrokers who recommend these complex investments. One significant risk associated with non-traded REITs has to do with their high up-front commissions, typically between 7-10%. In addition to high commissions, non-traded REITs like HTI generally charge investors for certain due diligence and administrative fees, ranging anywhere from 1-3%.
Furthermore, non-traded REITs are generally illiquid investments. Unlike traditional stocks and mutual funds, non-traded REITs do not trade on a national securities exchange. Many uninitiated investors in non-traded REITs have come to learn too late that their ability to exit their investment position is limited. Typically, investors in non-traded REITs can only redeem their holdings through limited redemption opportunities directly with the sponsor and often at a disadvantageous price or through sales in a limited secondary market.
Contact Colling Gilbert Wright, LLC Today
If you hold shares of HIT or any other non-traded REIT investment, Direct Private Placement (DPP) or Business Development Company (BDC), please contact our experienced arbitration attorney today at (800) 766-1000 or complete our contact form for a complimentary case evaluation. Thank you.