May 29, 2018 Comments (0) Blog, Current Investigations

Hartman REITs Net Asset Values Decline Prior to Merger

Hartman REITs

Concerned about your investment in a Hartman REIT?

According to SEC filings this week, three affiliated REITs, Hartman Short Term Income Properties XX Inc., Hartman Income REIT Inc., and Hartman Short Term Income Properties XIX Inc., have released information on lower net asset values per share prior to the companies’ proposed merger. The proposal is still subject to shareholder approval.

As we told you last July, the three Hartman subsidiaries plan to merge into Hartman XX, a publicly registered non-traded REIT. Hartman Income REIT and Hartman XIX are currently private REITs.

Hartman Short Term Income Properties XX’s offering was declared effected by the SEC in February 2010 and closed in March 2016 after raising $176 million in investor equity. The REIT’s NAV per share has declined approximately $0.24 per share or 1.9 percent to $12.55 as of December 31, 2017. Its previous NAV per share was $12.79, as of December 31, 2016.

Hartman Income REIT is a private REIT formed in January 2008 that focuses on acquiring and operating income producing office, retail and light industrial properties and owns 19 properties in the Houston, Dallas and San Antonio, Texas metropolitan areas. Its NAV per share has declined $0.20 per share or approximately 2.1 percent to $9.42 as of December 31, 2017, from $9.62, as of December 31, 2016.

Hartman Short Term Income Properties XIX is a private REIT formed in January 2007 and focuses on acquiring office, retail and light industrial properties. The REIT announced a NAV per share of $13.19 as of December 31, 2017, a decrease of $2.65 per share or 16.7 percent compared to its previous NAV per share of $15.84, as of December 31, 2016.

According to the company, the drop in values was primarily due to a decline in the expected net operating income budgeted for each property based on changing tenant mix, market conditions, tenant move-outs, renewals, expenses, and anticipated new lease activity.

The company says that changing the terms of the merger, in light of the new NAVs, would simply further delay the merger.

Investigating Potential Claims

The White Law Group is continues to investigate potential securities fraud claims on behalf of investors involving broker-dealers recommendation that investors purchase high risk REIT investments, including Hartman REITs.

FINRA continues to monitor the sale of REITs, in particular, the ways in which broker/dealers marketed and sold the products to investors. In many cases broker-dealers marketed these investments as safe and secure.

REITs typically pay a high commission – often as much as 15% which often explains the stockbroker’s motivation in recommending the REIT investment to the investor.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of a Hartman REIT investment, please contact The White Law Group at 888-637-5510.

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, please visit our website at https://www.whitesecuritieslaw.com.