August 5, 2017 Comments (0) Blog, Current Investigations, Securities Fraud

NexPoint Multifamily Capital Trust Suspends DRIP

NexPoint Multifamily Capital Trust
(Last Updated On: August 8, 2017)

Investigating Potential Claims involving NexPoint Multifamily Capital Trust

Are you concerned about investment losses in NexPoint Multifamily Capital Trust? If so, the securities attorneys at The White Law Group may be able to help you recover your investment losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

NexPoint Multifamily Capital Trust is a publicly registered non-traded real estate investment trust. The REIT’s previous investment strategy focused on preferred equity investments, mezzanine loans, bridge loans and first mortgages, as well as directly purchased Class A multifamily properties located in the Southeastern and Southwestern United States.

According to SEC filings, NexPoint Multifamily Capital Trust has suspended its distribution reinvestment plan. The REIT recently announced plan to change its name and go public.

The DRIP has been terminated beginning with distributions declared for the month of July 2017, which are payable in August 2017. Stockholders will continue to receive their full distributions, which will be paid in cash as opposed to additional shares of common stock.

According to reports, the REIT terminated its $1 billion offering and filed a registration statement with the SEC to reclassify its Class A shares as common stock, eliminate its Class T shares, and change its name to NexPoint Real Estate Finance Inc.

NexPoint Real Estate Finance intends to qualify as a REIT that focuses on providing structured financing for properties that have a broad tenant base and short-term leases, including mid-sized multifamily, storage, and select-service and extended-stay hospitality properties and companies.

The company plans to offer an undisclosed number of shares of common stock and list on the New York Stock Exchange under the ticker symbol NREF. The move is intended to facilitate company growth and offer shareholders an opportunity to gain liquidity, the company said.

Are non-traded REITs suitable for you?

Non-traded REITS, such as NexPoint Multifamily Capital Trust, are considerably more complex and involve a high degree of risk compared to traditional investments, such as stocks, bonds and mutual funds. Unfortunately many investors were not made aware of the risks and liquidity problems associated with REITs.

The White Law Group has represented numerous investors in claims  involving non-traded REITs such as NexPoint Multifamily Capital Trust.

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line 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 suffered losses investing in NexPoint Multifamily Capital 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.