Hines Global REIT Delays New Net Asset Value due to Coronavirus
Are you concerned about your investment in Hines Global REIT? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
The White Law Group continues to investigate FINRA arbitration claims involving brokerage firms who may have unsuitably recommended Hines Global REIT to investors. If you have suffered investment losses, the securities attorneys at The White Law Group may be able to help you.
According to reports this week, the board of Hines Global REIT, a publicly listed non-traded REIT has reportedly decided not to determine a new net asset value per share of the company’s common stock in due to the coronavirus (COVID-19) global pandemic.
The REIT’s most recent Net Asset Value as of February 2019, was $6.17 per share and the shares were originally sold for $10 per share. This does not take into account previous distributions of $2.95 that were paid to shareholders.
Shareholders have apparently been waiting for news of the REIT’s liquidation after approving a plan in July 2018 for liquidation and dissolution. The dissolution was originally planned to be finalized in July 2020 with final distributions to be paid to Hines Global REIT shareholders at that time. Now the board is reportedly stating the distributions may not be paid to shareholders right away due to adverse market conditions, according to SEC filings. Instead, the REIT will set up a reserve for its remaining obligations and to cover its expenses as it completes its wind down and dissolution.
Unfortunately for investors it appears that many financial advisors/brokerage firms that sold non-traded REITs such as Hines Global REIT, may have understated or misrepresented the
Recovery of Investment Losses
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.
If you are concerned about your investment in Hines Global REIT, 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.