Since David Lerner and Apple REIT continue to maintain that the value of Apple REIT shares is approximately $11/share, many of the clients with whom we have spoken ask whether their investment has declined in value.
Unfortunately for investors, while many Apple REIT investors still believe that their shares are valued at the $11/share purchase price that appears on their statements, the reality is that the shares are only worth what someone is willing to pay for them. This number is likely far less than the Apple REITs are currently valued on investors account statements. An additional problem is that attempts to redeem shares could drive the price down even further.
Interestingly, Apple REIT has finally acknowledged that its share prices are not $11 as had been previously disclosed. In a recent press release in response to the unsolicited offer made by MacKenzie Patterson Fuller, LP to purchase up to 5,000,000 shares of Apple REIT Seven for $3/share, Apple REIT stated that the book value of Apple REIT Seven is actually $7.83. Whether the shares are worth $7.83/share as Apple REIT maintains or $3.00/share which is the current offer, it is clear that the shares have declined precipitously. Given the downturn in the real estate market and the news of FINRA’s investigation into David Lerner’s Apple REIT sales practices, it seems likely that investor’s investments in Apple REIT will only continue to decline and that Apple REIT will be forced to suspend redemptions.
If you are concerned about your investment in Apple REIT, the securities attorneys of The White Law Group may be able to help. To speak with a securities attorney, please call the firm’s Chicago office at 312/238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit the firm’s website at http://www.whitesecuritieslaw.com.