CIM Real Estate Finance Trust – Investors may have Claims
Are you concerned about your investment in CIM Real Estate Finance Trust (formerly known as Cole Credit Property Trust IV (CCPT IV)? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
CIM Real Estate Finance Trust, Inc., a publicly registered non-listed real estate investment trust (REIT), reportedly plans to reposition its portfolio into commercial mortgage loans by selling a substantial portion of its shopping center assets.
According to a recent letter to investors, MacKenzie Realty Capital, Inc. is offering to purchase shares of CIM for $4.79 per share between now and December 30, 2019.
According to the offer letter, the REIT estimates that its shares are worth $8.65 per Share, as of December 2018. Unfortunately for investors, that’s a “decline of 7.7% from the prior estimate of $9.37 per Share.”
Further, the REIT’s Share Repurchase Program is oversubscribed. According to the letter, the program did not redeem approximately 37.9 million of the shares submitted for redemption as of June 30, 2019.
This could be a problem for investors, if they need to liquidate their shares.
Declining Net Asset Value (NAV), updated June 3, 2020
According to filings with the SEC, the REIT’s NAV continues to decline. The board has reportedly declared a $7.26 net asset value per share for the company’s common stock as of March 31, 2020.
The REIT’s previous NAV per share was $7.77 as of December 31, 2019, and shares originally sold for $10.00 each.
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.
Lack of Liquidity – A Risk of Non-Traded REITs
Investors looking to sell alternative investments, like CIM Real Estate Finance Trust, often have difficulty finding a buyer, and can suffer significant losses on the sale.
Your financial advisor has a responsibility to perform due diligence on any investment before recommending it to you. If your advisor unsuitably recommended CIM Real Estate Finance Trust and you lost money, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claims against the brokerage firm that sold you the investment.
The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to resolve disputes with their brokerage firm. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.
For a free, no obligation consultation with a securities attorney, please contact the offices of The White Law Group at 1-888-637-5510.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
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