Recovery of Inland Real Estate Income Trust Losses | Update May 28, 2020
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. 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.
According to filings with the SEC this week, the REIT has suspended distributions and rescinded the first quarter distribution that was expected to be paid on June 1, 2020 to stockholders of record as of May 29, 2020. The company also suspended its distribution reinvestment plan and share repurchase plan until further notice indicating that the suspensions are temporary and cited uncertainty surrounding the COVID-19 global pandemic as the reason.
Secondary Sales Price could indicate Losses for Inland REIT investors, Updated May 28, 2020
According to Central Trade & Transfer, shares of the REIT are currently listed for $9.00 per share. This may mean significant losses for investors, as shares of Inland REIT originally sold for $10.00 each, but the company conducted a 1-for-2.5 reverse stock split in 2018, resulting in a final offering price of $25.00 per share.
According to SEC filings, the company’s Net Asset Value (NAV) per share continues to decline. Inland’s board announced a new NAV as of December 31, 2019 of $18.15 per share. Last March, the NAV per share was $20.12. Prior to that, it was reportedly $22.35 per share.
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, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.