Concerned about investment losses in New York City REIT? Updated July 30
Have you suffered losses investing in New York City 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.
According to new filings with the SEC, the board of New York City REIT Inc., has just approved a plan to list the company’s common stock on the New York Stock Exchange under the symbol “NYC.” The REIT anticipates listing the shares on August 18, 2020.
New York City REIT (formerly known as ARC New York City REIT) is a publicly registered non-traded real estate investment trust sponsored by AR Global. The REIT invests in properties located in the five boroughs of New York City, with a focus on Manhattan. The company closed its initial public offering in May 2015 and has raised a total of $760 million in investor equity, as of September 30, 2016.
The board gave several reasons for making the decision to list the shares, including “providing liquidity for existing stockholders, allowing new stockholders to participate in the company’s growth, potential capital opportunities at lower costs, and potential external growth through continued acquisitions and robust leasing activity.”
NYC Reverse Stock Split
The board reportedly just approved a 2.43-1 reverse stock split that would cause the total number of shares to decrease 2.43 times as compared to the total number of shares outstanding, which was roughly 31 million as of June 30th.
The board also noted that they will be reinstating distributions which will be paid as dividends in arrears on a quarterly basis to holders of record on a single quarterly record date, “with the first dividend paid in October 2020 in a partial quarterly amount covering the period from the date on which shares commence trading on the NYSE through September 30, 2020.”
Although the REIT’s current NAV per share is $20.26/share as of June 30, 2019, investors may have reason for concern due to declining secondary market prices.
On December 9, 2019, Mackenzie Realty Capital, Inc. extended an offer to purchase shares of New York City REIT, Inc. at a purchase price of just $10.05/Share. The initial offering price of New York City REIT was $25.00/share.
The Trouble with Non-traded REITs
Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITS, like New York City 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.
The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs such as New York City REIT to these investors.
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 invested in New York City REIT 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, visit www.whitesecuritieslaw.com.