May 15, 2018 Comments (0) Blog, Current Investigations

Phillips Edison & Co., Inc. – Third party Tender Offer

Phillips Edison & Co.
(Last Updated On: May 15, 2018)

Investigating Potential Claims – Phillips Edison & Co.

Are you concerned about your investment in Phillips Edison & Co? If so, the securities attorneys may be able to help you through FINRA Arbitration.

Phillips Edison & Co., Inc. (formerly known as Phillips Edison Grocery Center REIT I), is an internally-managed real estate investment trust (REIT). According to Bloomberg, the REIT is “one of the nation’s largest owners and operators of grocery-anchored shopping centers.”

MacKenzie Realty Capital, Inc. has recently extended a tender offer to purchase shares of Phillips Edison & Co. for $7.09/ Share.  According to the offer, the REIT estimates that its Shares are worth $11.00/Share.

According to filings with the SEC, the Share Repurchase Program is oversubscribed. Over 10.8 million shares were not redeemed last year. The Company stated that, “In 2017 and 2016, repurchase requests surpassed the funding limits under the SRP … no funds were available for repurchases during the fourth quarter of 2017 and no funds will be available for the first quarter of 2018. Additionally, repurchases during the remainder of 2018 are expected to be limited.”

Recovery of Investment Losses

The White Law Group continues to investigate potential claims involving high risk non-traded REITs like Phillips Edison & Co.

Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.

Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%. Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.

In addition to the high risks, non-traded REITs, like Phillips Edison & Co. often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

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. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.

If you suffered losses investing in Phillips Edison & Co. and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

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

 

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