NorthStar Healthcare Income, Inc.
On December 4, 2018, NorthStar Healthcare Income, Inc. (NHI) announced an estimated NAV per share of $7.10 as of June 30, 2018. This is a reduction of approximately 16.5% from the previous NAV per share of $8.50 per share as of June 30, 2017. NHI engaged Robert A. Stanger & Co. Inc. to assist the board of NHI in estimating the NAV per share. NHI identified numerous factors for the decline in estimated NAV per share, including occupancy challenges in select markets, increased property operating expenses due to statutory wage increases and constrained labor supply conditions in certain markets, challenging conditions in the skilled nursing industry resulting in the restructuring of leases and replacement of tenants reducing rental revenues, operator transitions on certain properties leading to short-term disruptions in operations and occupancy, and distributions in excess of funds available for distribution.
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FS Investment Corporation and Corporate Capital Trust, Inc.
On December 3, 2018, FS Investment Corporation (FSIC, NYSE: FSIC) announced that its shareholders approved the merger with Corporate Capital Trust, Inc. (CCT, NYSE: CCT). CCT also announced that its shareholders approved the merger with FSIC. Both FSIC and CCT are advised by FS/KKR Advisor LLC, a joint venture between FS Investments and KKR & Co. Inc. FSIC also received shareholder approval to issue shares below NAV in the future to provide additional flexibility in its capital structure. The merger is anticipated to be completed on December 19, 2018. Upon completion the combined entities will be renamed FS KKR Capital Corp. and will trade on the NYSE using the FSK ticker.
Additionally, on November 29, 2018, CCT announced that its board of directors approved a special distribution of $0.40 per share plus any remaining undistributed net investment income and net realized gains of CCT payable on or about December 27, 2018. The record date for the special distribution is December 18, 2018, and the special distribution is predicated on the closure of the merger.