To support distributions at a rate of at least 6.75% per year during the two-year period following its initial public offering and before NorthStar Healthcare has acquired a substantial portfolio of income-producing investments, the sponsor has agreed to purchase under certain circumstances up to an aggregate of $10 million shares of NorthStar Healthcare common stock. Our distribution support agreement with our sponsor terminates two years after the commencement of the offering and not two years after the date you purchase your shares. The amount and timing of distributions that we may pay during or after the two year period following the initial public offering is uncertain. We are not obligated to pay future distributions of 6.75% and we may make future distributions of less than 6.75%. Distributions are expected to be paid monthly, but not assured and may be paid from any source, including offering proceeds, borrowings or sales of assets, which may constitute a return of capital and significantly reduce the amount of capital that we have available for investment.
There is no guarantee of distributions. Distributions have been paid and may continue to be paid from sources other than cash flow from operations, such as offering proceeds, borrowings or sales of assets and distributions may exceed earnings. We have paid distributions in excess of our cash flow provided by operations. For the nine months ended September 30, 2017, we declared distributions of $94,030,000 compared to cash flow provided by operations of $11,708,000. The remaining $82,322,000, or 87.5%, was paid using offering proceeds, including the purchase of additional shares by our sponsor, which reduces the amount we can invest in income-producing assets and your overall return may be reduced. Distributions have also exceeded our net loss of $(93,062,000) for the same period. Fees paid to the advisor were not determined on an arm’s length basis and reduce the amount the program can invest in income-producing assets and your overall return may be reduced.