Inland Real Estate Income Trust, Inc. Delays Distributions, Updated April 14, 2020
Inland Real Estate Income Trust, Inc. (Inland REIT)
Are you concerned about your investment in Inland Real Estate Income Trust (Inland REIT)? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Inland REIT owns a portfolio of 44 properties consisting of shopping centers, power centers and single tenant retail properties. Inland REIT reported total assets of approximately $1.2 billion and debt to gross properties was 56% as of year-end 2019, according to FactRight.
On March 30, 2020, Inland REIT announced that its board of directors decided to delay the $0.226875 per share distribution that was scheduled to be paid on April 1, 2020. The distribution is now expected to be paid on June 1, 2020.
The company says that during this delay no distributions will be made under Inland REIT’s distribution reinvestment program (DRIP). The company further noted that under its share repurchase program all repurchased shares are purchased with proceeds from the DRIP, indicating that no share repurchases will occur until distributions are made.
NAV Continues Decline
According to SEC filings, the company’s Net Asset Value (NAV) per share continues to decline. Inland’s board announced a new NAV as of December 31, 2019 of $18.15 per share. Last March, the NAV per share was $20.12. Prior to that, it was reportedly $22.35 per share. Shares of the Inland REIT originally sold for $10.00 each, but the company conducted a 1-for-2.5 reverse stock split earlier this year, resulting in a final offering price of $25.00 per share.
The board indicated that it took into account the recent volatility in the retail market when determining the new NAV per share.
The White Law Group continues to investigate FINRA arbitration claims involving brokerage firms who may have unsuitably recommended Inland Real Estate Income Trust to investors. If you have suffered investment losses, the securities attorneys at The White Law Group may be able to help you.
Unfortunately for investors it appears that many financial advisors/brokerage firms that sold non-traded REITs such as Inland Real Estate Income Trust, may have understated or misrepresented the risks and liquidity problems.
Recovery of Investment Losses
Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.
Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.
High commissions could be a motivating factor for unscrupulous financial advisors to sell the REIT regardless of whether the investment is in line with the client’s investment objectives and profile. Moreover, the total commissions and expenses make it difficult for non-traded REITs to perform in line with the market.
If you are concerned about your investment in Inland Real Estate Income Trust, please call the securities attorneys of The White Law Group 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 and Franklin, Tennessee.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.