How to Recover Investment Losses involving American Finance Trust (AFIN)
The White Law Group continues to investigate potential securities lawsuits involving American Finance Trust. Our securities attorneys may be able to help you recover your losses through FINRA arbitration.
American Finance Trust (AFIN) is a publicly traded real estate investment trust formerly known American Realty Capital Trust V. The REIT, which is currently listed on the Nasdaq, is focused on managing and acquiring a high-quality single and multi-tenant portfolio that is service-retail focused, according to its website.
According to news reports on January 3, non-traded REIT CIM Real Estate Finance Trust announced that it had reached an agreement to sell all of its shopping centers to American Finance Trust Inc. for $ 1.3 billion.
The deal reportedly includes 81 properties anchored with major retail tenants and grocery centers, according to a press release. Upon completion of the deal, AFIN will reportedly will have a portfolio that will include over 1,000 properties and 29 million square feet.
American Finance Trust plans to rename itself to “The Necessity Retail REIT” at completion of the deal, in the first quarter of 2022.
Numerous AFIN shareholders have filed lawsuits involving AFIN, including class action lawsuits involving AFIN’s merger with another AR Global REIT, American Realty Capital – Retail Centers of America, in which the plaintiffs alleged that the company did not outline the possible negative impacts of the merger on the financial performance of the REIT in its registration statement.
Reverse Stock Split and “Phased Liquidity Plan”
On July 9, 2018, American Finance Trust (AFIN) announced that it had conducted a 2-1 reverse stock split and changed its common stock to Class A common stock as part of its “phased liquidity plan,” which is intended to reduce prospective selling pressure immediately following the listing of AFIN’s Class A common stock on the NASDAQ.
AFIN opened on the Nasdaq at $13.15 per share and closed at $15 per share, on July 18, 2018. On Oct. 14, 2018, the REIT’s stock price closed at $14 per share, 40 percent lower than its net asset value of $23.56 per share.
According to Yahoo Finance shares of American Finance Trust (AFIN) Ordinary Class A shares closed at $9.36 per share yesterday.
For more information on the firm’s investigations please see:
Recovery of Investment Losses
The trouble with non-traded REITs is that they are complex and inherently risky products. Lack of liquidity is often problematic for many investors. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.
Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.
The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitably recommended American Finance Trust to investors. The firm has received numerous calls from investors who have lost money in AFIN and other high-risk non-traded REITs.
If you suffered losses investing in American Finance Trust, the securities attorneys at The White Law Group may be able to help you. To speak to a securities attorney about the potential to recover your investment losses, please call the offices of 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 Seattle, Washington.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.