Secondary Market Price for CCPT IV Suggests Losses for Investors
The White Law Group is continuing our investigation in regards to the liability that some broker dealers may have for improperly recommending Cole Credit Property Trust IV (CCPT IV), a non-traded real estate investment trust (REIT) to investors. If you have suffered losses in CCPT IV, you may have recourse through FINRA Arbitration.
Non-Traded REITs such as Cole Credit Property Trust IV are generally speculative, high risk investments and due to these risks are often unsuitable for most investors.
According to recent SEC filings, the REIT’s Net Asset Value (NAV) has dropped. The net asset value was $9.37 per Share as of December 31, 2017 which is a decline of about 7% from the previous estimated value of $10.08/Share.
Update on March 27, 2019
According to new filings with the SEC, the REIT’s board has reportedly approved an $8.65 per share net asset value of the company’s common stock as of December 31, 2018. The updated valuation will appear on stockholder’s first quarter 2019 account statements.
The board previously approved a per share NAV of $9.37 as of December 31, 2017, $10.08 as of December 31, 2016, $9.92 as of September 30, 2016, and $9.70 as of August 31, 2015.
This could be bad news for investors.
Liquidity Problems – Secondary Sales
Investors looking to sell non-traded REITs, like CCPT IV, often have difficulty finding a buyer, and can suffer significant losses on the sale. According to filings with the SEC, the REIT’s Share Repurchase Program is oversubscribed.
Central Trade & Transfer, secondary market for non-traded REITs, recently listed shares of Cole Credit Property Trust IV for $7.90 per share. This may be at a loss to investors.
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 Franklin, Tennessee.
The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors.