Investment Strategy

NorthStar Healthcare's primary objective is to maximize value and generate liquidity for shareholders. The key elements of this strategy include:

• Grow the Operating Income Generated by its Portfolio. Through active portfolio management, NorthStar Healthcare will continue to review and implement operating strategies and initiatives in order to enhance the performance of its existing investment portfolio.
  
  
• Deploy Strategic Capital Expenditures. NorthStar Healthcare will continue to invest capital into its operating portfolio in order to maintain market position, functional and operating standards, and provide an optimal mix of services and enhance the overall value of its assets.
  
  
• Pursue Dispositions and Opportunities for Asset Repositioning and Other Strategic Initiatives to Maximize Value. NorthStar Healthcare will actively pursue dispositions of assets and portfolios where it believes the disposition will achieve a desired return and generate value for shareholders. Additionally, NorthStar Healthcare will continue to assess the need for strategic repositioning or sale of assets, joint ventures, operators and markets to position its portfolio for optimal performance. NorthStar Healthcare will also opportunistically explore other strategic initiatives to create value for shareholders.

Various factors that could have a material adverse effect on NorthStar Healthcare’s operations and future prospects are set forth in its filings with the U.S. Securities and Exchange Commission (SEC).