August 1, 2017 Comments (0) Current Investigations, Securities Fraud

Investigating Potential Claims in American Finance Trust

American finance trust
(Last Updated On: August 28, 2017)

American Finance Trust Secondary Market Listing $16.25/Share

Are you worried about 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 by filing a FINRA Arbitration Claim against the brokerage firm that sold you the investment.

American Finance Trust commenced its initial public offering in April 2013, which closed six months later after raising $1.6 billion in investor equity. In February 2017, the company completed its merger with affiliated non-traded REIT, American Realty Capital – Retail Centers of America, and now owns a portfolio of 491 properties with a total purchase price of $3.5 billion. It was formerly known as American Realty Capital Trust V, Inc.

Unfortunate News for Investors

In June we told you that American Finance Trust amended its existing share repurchase program and the company’s distribution rate, according to SEC filings.

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

The board also amended the share repurchase program, 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.

Unfortunately there is more bad news for investors. Central Trade & Transfer, a secondary market for private placements, is currently listing shares of American Finance Trust for $16.25 per share. That’s significantly less than the original purchase price of $25.00 per share.

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.

Free Consultation

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.