Steadfast Income REIT decreases NAV & Distribution Rate.
Did you lose money investing in Steadfast Income REIT at the advice of your financial advisor? If so, the securities attorneys at 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.
Steadfast Income REIT is a non-traded Real Estate Investment Trust (REIT) that closed its initial public offering on December 20, 2013.
In April 2018, the REIT decreased its net asset value per share for its common stock nearly 7% to $10.84 per share, according to SEC filings. The board also lowered the annual distribution rate from 7 percent to 6 percent based on the purchase price of $10.24 per share.
According to Central Trade & Transfer, a secondary market for REITs, shares of Steadfast Income REIT have recently been listed for sale for $7.75/share. The original purchase price was $10.00/share.
Update on May 16, 2019
The board of Steadfast Income REIT Inc., a publicly registered non-traded real estate investment trust, has recently approved a $9.40 estimated net asset value per share of the company’s common stock as of December 31, 2018.
The company’s previous NAV per share was $10.84, as of December 31, 2017.
Risks of Non-traded REITs
The White Law Group continues to investigate potential claims involving broker-dealers’ unsuitable recommendation that investors purchase high-risk non-traded REITs like Steadfast Income REIT. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.
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.
Unfortunately, in many cases, the high sales commissions paid by REITs may provide some brokers with enough incentive to make unsuitable investment recommendations.
Non-traded REITs usually 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 Steadfast Income REIT 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.