September 11, 2018 Comments (0) Blog, Current Investigations

Inland Real Estate Income Trust Losses

Inland Real Estate Income Trust losses

Recovery of Inland Real Estate Income Trust Losses

The White Law Group continues to investigate FINRA arbitration claims involving brokerage firms who may have unsuitably recommended Inland Real Estate Income Trust to investors.  If you have suffered Inland Real Estate Income Trust losses, the securities attorneys at The White Law Group may be able to help you.

Unfortunately for investors it appears that many financial advisors/brokerage firms that sold non-traded REITs such as Inland Real Estate Income Trust, may have understated or misrepresented the risks and liquidity problems.

Inland Real Estate Income Trust, Inc. (formerly known as Inland Core Assets Real Estate Trust, Inc. (filings through 2011-11-29) and Inland Monthly Income Trust, Inc. (filings through 2012-02-15)) acquires and manages a portfolio of commercial real estate investments located in the United States, according to Bloomberg. It primarily focuses on acquiring retail properties.

Third party Tender offer could indicate Inland Real Estate Income Trust Losses

According to SEC filings, MacKenzie Capital Management LP and its affiliates have launched an unsolicited tender offer to purchase up to 2 million shares of Inland common stock for $11.65 per share. The offer expires on October 31, 2018.

MacKenzie’s offer price is 48.5 percent less that Inland REIT’s most recent net asset value of $22.35 per share. Shares of Inland REIT originally sold for $10.00 each, but the company conducted a 1-for-2.5 reverse stock split earlier this year, resulting in a final offering price of $25.00 per share.

If all shares in the current offer are tendered, Mackenzie will reportedly pay $23.3 million and own 5.6 percent of the outstanding shares.

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

High commissions could be a motivating factor for unscrupulous financial advisors to sell the REIT regardless of whether the investment is in line with the client’s investment objectives and profile.  Moreover, the total commissions and expenses make it difficult for non-traded REITs to perform in line with the market.

Free Consultation with a Securities Attorney

If you invested in Inland Real Estate Income Trust and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

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

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