Washington Prime Group (NYSE:WPG), Mall REITs on the Decline
Are you concerned about your investment in Washington Prime Group (NYSE:WPG)? If so, the securities attorneys at The White Law Group may be able to help you.
Mall REITs are on the decline in 2019, according to reports. Investors are turning away from retail real estate after an almost record number of store closures this year.
Washington Prime Group shares dropped more than 10% between last Wednesday and the end of trading on Monday after a report released on Thursday indicating that J.C. Penney(NYSE:JCP) had hired advisors to study alternatives for restructuring its debt.
While J.C. Penney isn’t expected to file for bankruptcy, the company’s profitability has taken a downward spiral in recent years.
J.C. Penney is reportedly a key tenant for Washington Prime, with 37 stores in Washington Prime’s 50 traditional enclosed malls, providing 1.1% of the REIT’s annualized base rent.
If J.C. Penney is forced to close stores in a recession, that would leave Washington Prime with a vast amount of anchor vacancies.
Washington Prime Group – Securities Investigation
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Washington Prime Group to investors.
REITs often pay a high dividend but certain advisors may have unsuitably recommended Washington Prime Group in an effort to “chase yield.”
Broker-dealers have a legal obligation to act in the best interest of their clients and have to demonstrate adequate due diligence on an investment before recommending the investment to a client. Furthermore, recommendations should be consistent with an individual’s age, risk tolerance, financial objectives, and investment knowledge.
Broker-dealers that have not done their fiduciary duty or adequately disclose the risks when selling investments may be held liable for damages lost through FINRA arbitration claims.
If you are concerned about your investment in Washington Prime Group or another mall REIT, The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 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 Franklin, Tennessee.
For more information on The White Law Group, visit https://whitesecuritieslaw.com.