CIM Real Estate Finance Trust, Secondary Market Sales

CIM Real Estate Finance Trust (fka Cole Credit Property Trust IV) Securities Investigation

The White Law Group continues to investigate FINRA arbitration claims involving CIM Real Estate Finance Trust f/k/a Cole Credit Property Trust IV (CCPT IV).

Unfortunately for investors it appears that many financial advisors/brokerage firms that sold non-traded REITs such as CIM Real Estate Finance Trust, may have understated or misrepresented the risks and liquidity problems.

The REIT reportedly invests in commercial real estate primarily leased to creditworthy tenants under long-term net leases. The REIT launched its offering in January 2012 and raised more than $3 billion prior to closing in April 2014.

The Company’s board of directors approved the change of the corporate name of the Company to CIM Real Estate Finance Trust, Inc., on August 14, 2019.

Declining Net Asset Value (NAV)

According to filings with the SEC, the REIT’s NAV continues to decline. The board has reportedly declared a $7.26 net asset value per share for the company’s common stock as of March 31, 2020.

The REIT’s previous NAV per share was $7.77 as of December 31, 2019, and shares originally sold for $10.00 each.

The board previously approved a per share NAV of $9.37 as of December 31, 2017, $10.08 as of December 31, 2016, $9.92 as of September 30, 2016, and $9.70 as of August 31, 2015.

Secondary Market Sales Price

According to Central Trade & Transfer, a secondary market website, shares of CIM Real Estate Finance Trust have recently sold for $4.27 per share. Unfortunately for many investors, it appears that the secondary market price would represent a loss on their initial capital investment.

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 non-traded REITs 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 the REIT to perform in line with the market.

Free Consultation with a Securities Attorney

If you invested in a CIM Real Estate Finance Trust (CCPT IV) and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.

For more information on The White Law Group, visit https://whitesecuritieslaw.com.