Recovery of Highlands REIT Investment Losses
The White Law Group continues to investigate potential claims against the broker dealers that sold high risk investments, like Highlands REIT, onto unsuspecting investors.
Highlands REIT is a non-traded real estate investment trust that oversees an 18-property portfolio of office, industrial, and retail assets, correctional facilities, and unimproved land.
Highlands REIT was a spin-off of InvenTrust in April 2016. Each InvenTrust stockholder received one share of Highlands REIT common stock for every share of InvenTrust common stock. InvenTrust stockholders now own shares in both InvenTrust and Highlands. The number of InvenTrust shares held by stockholders did not change as a result of the distribution of Highland’s common stock.
Third Party Tender Offer
On Monday, Mackenzie Realty Capital extended a third party tender offer to purchase shares of Highland REIT for just $.17/share. According to the letter, Highlands REIT, Inc. has not paid a distribution since its spin-off from InvenTrust. In addition, Highlands decreased its estimated net asset value nearly 6% since the spin-off.
Last year, the board of Highlands REIT approved an estimated per share net asset value of $0.35 per share, as of December 31, 2016.
The trouble with non-traded REITs, like Highlands REIT, is that they are complex and inherently risky products.
Highlands REIT, Inc. is an infinite life entity, and the company has never said if or when the company will liquidate. Investors looking to sell non-traded REITs such as this, often have difficulty finding a buyer, and can suffer significant losses on the sale.
Broker dealers are required to inform clients of the risks associated with investment recommendations. They must ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so may be held responsible for any losses.
If you have invested in Highlands REIT or another non-traded REIT 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. To learn more about The White Law Group visit www.whitesecuritieslaw.com.