June 5, 2020 Comments (0) Blog, Current Investigations, Securities Fraud

Hartman Short Term Income Properties XX Lowers NAV

Hartman Short Term Income Properties XX Investigation, featured by Top Securities Fraud Attorneys, The White Law Group

Hartman Short Term Income Properties XX, Update on Merger Agreement

Are you concerned about your investment in Hartman Short Term Income Properties XX? 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.

Hartman Short Term Income Properties XX, Inc. is a non-traded REIT reportedly set up by Hartman Income REIT.

On June 4, 2020, the REIT announced an estimated NAV per share of $11.26 as of December 31, 2019.  This marks an 11% decrease from the estimated NAV per share of $12.61 as of December 31, 2018.

According to and 8-K  filing with the SEC on March 31, the Company is unable to meet the filing deadline for Form 10-K due to circumstances related to COVID-19: The Company reportedly plans to include the following risk factor in its Form 10-K filing:

“Health concerns arising from the outbreak of a health epidemic or pandemic, including the COVID-19 coronavirus, may have an adverse effect on our business.

“Our business could be materially and adversely affected by the outbreak of a health epidemic or pandemic, including the coronavirus, particularly to the extent and degree to which the outbreak affects the U.S., state and local economies. Our revenues consist primarily of rental income and other tenant reimbursements derived from tenants of our commercial real estate properties. The effects of the COVID-19 coronavirus and other adverse public health developments could materially affect the financial viability of our tenants and their ability to pay rent. While it is premature to accurately predict the ultimate impact of these developments, we do not expect our results for the quarter ending March 31, 2020 to be significantly impacted, however, we do expect to be impacted with potentially continuing and possibly adverse impacts beyond March 31, 2020.”

Apparently the merger agreement which was announced in July 2017 was finally approved by shareholders at the meeting on May 14, 2020. Hartman Short Term Income Properties is the surviving entity from the mergers.

The Trouble with Non-Traded REITs

Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like Hartman Short Term Income Properties XX , 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 REITs.

The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to these investors.

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must 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 invested in Hartman Short Term Income Properties XX  and would like to speak to a securities attorney about the potential to recover your investment losses, please call 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, please visit www.whitesecuritieslaw.com.

 

 

 

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