June 15, 2017 Comments (0) Current Investigations

American Finance Trust Decreases Distributions

American Finance Trust
(Last Updated On: June 15, 2017)

Recovery of Investment losses in American Finance Trust

Have you suffered investment losses in American Finance Trust (AFT)? If so, the securities attorneys of The White Law Group may be able to help you recover your losses through FINRA Arbitration.

American Finance Trust, Inc. is a real estate investment trust launched and managed by American Financial Advisors, LLC. It invests in real estate markets of United States. The fund invests in diversified portfolio of commercial properties comprised primarily of freestanding single-tenant properties that are net leased to investment grade and other creditworthy tenants. It was formerly known as American Realty Capital Trust V, Inc. American Finance Trust, Inc. was formed on January 22, 2013 and is based in the United States, according to Bloomberg.

American Finance Trust amended its existing share repurchase program and the company’s distribution rate, according to SEC filings.

The board approved the amendments after considering the company’s long-term business strategy and desire to preserve capital that could be used to acquire additional assets and increase its distribution coverage.

The board unanimously authorized a decrease from $1.65 to $1.30 per share paid to stockholders on an annualized basis.

This represents a change in the annualized distribution yield, based on the original purchase price of $25.00 per share, from 6.6 percent to 5.2 percent, or a change from 7.1 percent to 5.6 percent based on the most recent estimated net asset value of December 31, 2016 of $23.37 per share. The new rate will be reflected in the August 5th distribution payment.

The board also amended the share repurchase program which will become effective on July 14, 2017. Under the new plan, subject to certain conditions, only repurchase requests made following the death or qualifying disability of stockholders will be considered for repurchase by the company.

The Trouble with Non-Traded REITs

Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like American Finance Trust, are considerably more complex and involve a high degree of risk. Unfortunately many investors were not made adequately aware of the risks and liquidity problems associated with REITs.

The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to these investors.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be inline with the investor’s age, risk tolerance, net worth, and investment experience.

Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.

If you have invested in American Finance Trust and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.

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 Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.