SmartStop Self Storage REIT Inc. Decline in Net Asset Value
Concerned about your investment in SmartStop Self Storage REIT Inc.?
Are you concerned about your investment in SmartStop Self Storage REIT Inc. ? 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.
SmartStop, a self-managed REIT with approximately 380 self storage professionals, also sponsors other self storage programs, including Strategic Storage Trust IV, Inc., a public non-traded REIT, and other private programs, according to its website.
According to SEC filings, SmartStop Self Storage REIT, formerly known as Strategic Storage Trust II has approved an estimated per share net asset value of $10.40 for its Class A and Class T common stock, as of December 31, 2019. Previously, the board approved an estimated NAV of $10.66 per share, as of March 31, 2019. Shares were originally sold for $10.00 per share.
The NAV per share was calculated prior to the emergence of coronavirus (COVID-19) in the United States. The company says at this time, “it is not able to quantify the potential impact on its estimated per share NAV until it has greater visibility into how the spread of the disease may affect the company’s operations or the broader economic environment,” according to filings with the Securities and Exchange Commission.
The estimated per share NAV is based on the estimated value of the company’s assets less the estimated value of its liabilities, or net asset value, divided by the number of shares outstanding on an adjusted fully diluted basis, calculated as of December 31, 2019.
Is a Non-traded REIT a Suitable Investment for you?
Non-trade REITs are not suitable for all investors, especially those who need liquidity in their investment. Brokerage firms have a responsibility to adequately disclose all risks befores selling any investment and must consider suitability factors such as age, financial needs, and risk tolerance to name a few.
However, many brokerage firms overlook suitability regulations set forth by the SEC to earn the high commission that non-trade REITs. Sales commissions can range from 6% to 10%, and often come with a 2%- 3.0% dealer manager fee.
Brokerage firms that do not perform adequate due diligences on an investment or demonstrate a breach of fiduciary duty can be held accountable for losses incurred through FINRA arbitration.
The White Law Group is investigating FINRA arbitration claims involving broker dealers who may have improperly recommended non-traded REITs such as SmartStop Self Storage REIT Inc. to investors.
If you have suffered losses investing in SmartStop Self Storage REIT Inc. the securities attorneys of The White Law Group may be able to help you. Please call the offices 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://whitesecuritieslaw.com