InvenTrust to launch “Dutch Auction” Tender Offer along with NYSE Listing
Concerned about investment losses in InvenTrust Properties Corp.?
The White Law Group continues to investigate potential securities claims involving InvenTrust Properties Corp., and the liability brokerage firms may have for improperly recommending it to investors.
InvenTrust Properties, Corp., formerly known as Inland American Real Estate Trust, reportedly invests in grocery-anchored shopping centers in the Sun Belt region of the U.S.
On September 20, InvenTrust Properties Corp. announced that the company will pursue a listing on the New York Stock Exchange in order to provide liquidity to its shareholders. The listing is subject to, among other things, the Company meeting the NYSE listing requirements and receiving NYSE listing authorization as well as market conditions and changes, and there can be no assurance as to whether, or when, the listing may be completed.
The Company intends to list its common stock on the New York Stock Exchange under the ticker symbol “IVT.”
The company noted that along with a potential NYSE listing, it intends to commence a $100 million modified “Dutch Auction” tender offer. The price range for the tender offer has not yet been determined. The Company also reiterated their commitment to increasing the dividend by 5% starting with the fourth quarter 2021 distribution due to be paid in January 2022. The new dividend rate for the fourth quarter will be $0.205 per share, or an annualized rate of $0.821 per share.
On August 5, 2021, the company effected a 1-for-10 reverse stock split of its common stock, where every 10 shares of outstanding common stock were changed into one share of common stock. Prior to the reverse stock split, the company’s most recent net asset value per share was $2.89 as of December 1, 2020, thus the new estimated value is $28.90 per share.
Liquidity is often problematic when investing in non-traded REITs, such as InvenTrust Properties, Corp.
According to Central Trade and Transfer, a secondary market for non-traded REITs, shares of InvenTrust are currently listed to sell for $17.50 per share. This may indicate losses for investors.
The Trouble with Non-traded REITs
The trouble with non-traded real estate investment trusts (REITs) is that they are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITs are more complex and are better suited for investors that can afford to risk the total losses of their investment.
Brokers often earn extremely high sales commission selling non-traded REITs, sometimes as high as 15%. Unfortunately, the high sales commissions associated with non-traded REITs often provide some broker dealers with enough incentive to overlook suitability requirements.
Brokers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor and are in line with the clients risk tolerance, age, net worth, and investment experience.
If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment, they may be liable for investment losses through FINRA arbitration.
For more information on the firm’s investigation, please see:
To determine whether you may be able to recover investment losses incurred as a result of your purchase InvenTrust Properties Corp., please contact 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.