March 10, 2017 Comments (0) Current Investigations

InvenTrust Properties Corp. Tender Offer $1.42/share

United Development Funding III
(Last Updated On: March 17, 2017)

Concerned about investment losses in InvenTrust Properties Corp.?

Have you suffered losses investing in InvenTrust Properties Corp. (formerly Inland America)? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

Investors looking to sell a private placement investments often have difficulty finding a buyer, and can suffer significant losses on the sale.

According to a letter from Mackenzie Realty Capital on March 9, a recent tender offer of $1.42 per Share was made. Unfortunately for investors, this appears to be a significant loss on their capital investment.

InvenTrust Properties Corp. recently lowered its quarterly distribution by 48%, from $3.25 per share to $1.68 per share. As a result, the annualized distribution yield based upon current NAV is currently just 2.1%.  In December, InvenTrust purchased about 89 million shares of its common stock at $2.66 per share through a “Dutch Auction” tender offer. The company has not disclosed any plans to do so again.

Trouble with Non-traded REITs

The trouble with non-traded real estate investment trusts (REITs) like, InvenTrust Properties Corp., is that they lack liquidity and are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITs are more complex and are better suited for investors that can afford to risk the total losses of their investment.

Brokers often earn extremely high sales commission selling non-traded REITs, sometimes as high as 15%. Unfortunately, the high sales commissions associated with non-traded REITs often provide some broker dealers with enough incentive to overlook suitability requirements.

Brokers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor and are in line with the clients risk tolerance, age, net worth, and investment experience.

If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses through FINRA arbitration.

Free Consultation

To determine whether you may be able to recover investment losses incurred as a result of your purchase InvenTrust Properties Corp., please contact The White Law Group at (888) 637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm, visit www.WhiteSecuritiesLaw.com.