RW Holdings NNN REIT – Securities Investigation
Concerned about investment losses in RW Holdings NNN REIT, Inc?
Have you suffered losses investing in RW Holdings NNN REIT? 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.
RW Holdings NNN REIT Inc., a publicly registered non-traded REIT formerly known as Rich Uncles NNN REIT Inc., has reportedly announced a net asset value per share of $7.00 for its Class C and Class S common stock, as of April 30, 2020. The REIT also lowered its distribution rate, citing known and potential lost rental income due to current market circumstances amid the COVID-19 pandemic.
The valuation of the REIT’s common stock continues to decline. Its previous NAV per share was $10.27 as of December 31, 2019, and prior to that, it’s NAVs per share were $10.16 as of December 31, 2018 and $10.05 as of December 31, 2017.
Due to known and potential lost rental income, the company has revised its distribution rate to $0.35 per share per year, paid monthly. This is equal to 5.0 percent annually based on the new NAV per share. The previous annualized distribution for Class C and Class S common stock was $0.70 per share.
RW Holdings NNN REIT Inc. reportedly plans to reopen its primary offering for Class C shares on June 1, 2020, at a revised $7.00 per share offering price after it temporarily suspended the offering in early May.
Potential Tenant Bankruptcy could indicate losses for Investors, update on June 3, 2020
According to recent SEC filings, the company also noted that one of its existing properties, 24 Hour Fitness, a 45,000-square-foot gym located in Las Vegas, Nevada is in danger of defaulting. The lease apparently has less than 10 years remaining and at the end of March 2020, 24 Hour Fitness sent a letter stating that they would not be paying rent due to government-mandated shutdowns as a result of the COVID-19 pandemic.
RW Holdings NNN REIT said that around that time, Wall Street analysts began speculating that 24 Hour Fitness would likely file for bankruptcy protection due to upcoming debt maturities and loss of revenue. More recently, 24 Hour Fitness engaged a third-party restructuring agent to handle negotiations with landlords and creditors.
The REIT notes that “If we cannot retain 24 Hour Fitness as our tenant on acceptable terms or find a replacement tenant, then the lender may foreclose on the property and take possession.”
The company reportedly merged with an affiliated non-traded REIT, Rich Uncles Real Estate Investment Trust I, last year.
Due to the pandemic, the company has reportedly been unable to file its quarterly financial report for the first quarter of 2020, due on May 15, 2020, and expects to file no later than June 29, 2020, according to filings with the SEC.
Investigating Potential Lawsuits
The White Law Group continues to investigate securities fraud claims involving broker dealers who may have unsuitably recommended non-traded REITs to its clients.
Non-traded REITS, compared to traditional investments, such as stocks, bonds and mutual funds, are considerably more complex and involve a high degree of risk. Unfortunately many investors were not made adequately aware of the risks and liquidity problems associated with these investments.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.
If you have suffered losses investing in RW Holdings NNN REIT, please call the securities attorneys at The White Law Group at 1-888-637-5510 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 www.whitesecuritieslaw.com.