CIM Real Estate Finance Trust: Tender Offer Price well below NAV
Are you concerned about your investment in CIM Real Estate Finance Trust (formerly known as Cole Credit Property Trust IV (CCPT IV)? 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.
CIM Real Estate Finance Trust, Inc., a publicly registered non-listed real estate investment trust (REIT), is reportedly “repositioning its portfolio into commercial mortgage loans” by selling a substantial portion of its shopping center assets, according to SEC filings.
Secondary Sales Price $3.94 per Share
According to a filing with the SEC, on September 5, 2023, Comrit Investments 1 LP, a Tel Aviv-based investment fund, extended an unsolicited tender offer to purchase up to 22 million shares of CIM Real Estate Finance Trust Inc., for $4.21 per share. This may indicate significant losses for investors.
According to Lodas Markets, a secondary market for non-traded investments, this week shares of CIM are selling for $3.94 per share.
Declining Net Asset Value (NAV)
According to filings with the SEC, the REIT’s NAV continues to decline. The board has reportedly declared net asset value (NAV) per share for CIM REIT was estimated at $6.09 on February 29 2023. Previously the REIT’s shares were valued at $7.20 per share as of March 31, 2022, and shares originally sold for $10.00 each.
Lack of Liquidity – A Risk of Non-Traded REITs
Investors looking to sell alternative investments, like CIM Real Estate Finance Trust, often have difficulty finding a buyer, and can suffer significant losses on the sale.
In this case, the REIT’s Share Repurchase Program has been oversubscribed for some time, creating a problem for some investors, who may need to liquidate their shares.
Unsuitable Investment Recommendations
Your financial advisor has a responsibility to perform due diligence on any investment before recommending it to you. If your advisor unsuitably recommended CIM Real Estate Finance Trust and you lost money, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claims against the brokerage firm that sold you the investment.
The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to resolve disputes with their brokerage firm. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.
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The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
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Tags: CIM Real Estate Finance Trust Last modified: March 14, 2024