February 10, 2021 Comments Off on SmartStop Self Storage REIT Tender Offer Price Suggests Losses for Investors Blog, Current Investigations

SmartStop Self Storage REIT Tender Offer Price Suggests Losses for Investors

SmartStop Self Storage REIT Tender Offer Price Suggests Losses for Investors, featured by top securities fraud attorneys, The White Law Group

Recovery of Investment Losses – SmartStop Self Storage REIT Inc. 

The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended SmartStop Self Storage REIT Inc. to investors.

SmartStop, formerly known as Strategic Storage Trust II, is a self-managed REIT with approximately 380 self storage professionals, which 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 a letter to shareholders on February 9, the REIT’s board of directors is instructing investors to ignore and reject a recent non-solicited third party tender offer from Comrit Investments I LP. The offer reportedly  proposed to acquire up to 373,961 shares of Class A common stock and 41,551 shares of Class T common stock of the Company at a price of $7.22 per share.

Smartstop reportedly 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 REIT notes in the letter that “although this does not represent the price that a stockholder could obtain in the open market, or otherwise, the NAV is approximately 44% more than the Comrit Tender Offer.”

The NAV per share was calculated prior to the emergence of coronavirus (COVID-19) in the United States. 

except with respect to redemption requests made in connection with the death or disability of a stockholder, as outlined in the Registrant’s SRP.

As previously reported, The REIT suspended the SRP September 27, 2019, except with respect to redemption requests made in connection with the death or disability of a stockholder, as outlined in the Registrant’s SRP.

Filing a Complaint against your Brokerage Firm

Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like SmartStop Self Storage REIT, 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.

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.

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.

For more information on The White Law Group, visit https://whitesecuritieslaw.com

 

 

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