NorthStar Healthcare’s primary objective is to invest in its portfolio and manage liquidity in order to maximize shareholder value. The key elements of this strategy include:
- Grow the Operating Income Generated by the 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.
- Pursue Strategic Capital Expenditures and Development Opportunities NorthStar Healthcare will continue to invest capital into its operating portfolio in order to maintain market position as well as functional and operating standards. In addition, NorthStar Healthcare will continue to execute on and identify strategic development opportunities for its existing investments that may involve replacing, converting or renovating facilities in its portfolio to provide an optimal mix of services and enhance the overall value of its assets.
- Consider Selective Dispositions and Opportunities for Asset Repositioning NorthStar Healthcare will consider dispositions of assets and portfolios where it believes the disposition will achieve a desired return and improve its liquidity position. 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.
- Financing Strategy. NorthStar Healthcare uses asset-level financing as part of its investment strategy to leverage its investments while managing refinancing and interest rate risk. NorthStar Healthcare typically finances its investments with medium to long-term, non-recourse mortgage loans, though its borrowing levels and terms vary depending upon the nature of the assets and the related financing. In addition, NorthStar Healthcare's sponsor has made available a revolving line of credit to provide additional short-term liquidity as needed.
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).