Another Merger Agreement involving Hartman REITs
The White Law Group continues to investigate potential securities lawsuits involving broker dealers who may have improperly recommended Hartman REITs to investors.
Hartman acquires, owns, manages, and leases commercial office, retail, light industrial and warehouse properties located in Texas.
According to recent filings with the SEC, the boards of Hartman Short Term Income Properties XX Inc. and Hartman vREIT XXI Inc., two publicly registered non-traded REITs, have voted to merge Hartman XX into Hartman vREIT XXI, with Hartman vREIT XXI as the surviving entity. Last month a separate merger closed involving three Hartman REITs, where Hartman Short Term Income Properties XX Inc. (Hartman XX) was the surviving entity.
In June we reported that Hartman XX 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 another 8-K filing with the SEC on March 31, the Company was 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.
The REITs anticipate a stock-for-stock consideration, but terms of the merger are still in negotiations. The companies note that they will be calculating new Net Asset Values in the next few months, as well as release information on terms of the latest merger agreement.
Filing a Complaint against your Brokerage Firm
These mergers may cause much confusion for investors, who are left wondering what their investment is really worth.
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 vREIT XXI or another Hartman 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, please visit www.whitesecuritieslaw.com.