Cantor Fitzgerald Income Trust Inc.: Securities Investigation

Cantor Fitzgerald Income Trust Inc. 

The White Law Group is investigating potential securities claims involving FINRA registered broker dealers who may have unsuitably recommended high risk non-traded REITs such as Cantor Fitzgerald Income Trust Inc.(formerly known as Rodin Global Property Trust) to investors.

Rodin Global Property Trust, a publicly registered non-traded REIT, reportedly invests primarily in single-tenant net leased commercial properties. According to filings with the SEC, the company has changed its name to Cantor Fitzgerald Income Trust Inc.

Walgreens Exposure

Walgreens is reportedly a significant tenant in various alternative investment real estate programs, including non-traded REITs and Delaware Statutory Trust (DST) portfolios, including Cantor Fitzgerald Income Trust.

In early February 2025, Walgreens reportedly suspended its quarterly dividend for the first time since the Great Depression, according to Fact Right, an alternative investment due diligence company.

This development follows a series of financial setbacks for Walgreens, including a downgrade to junk status by both S&P and Moody’s, an announcement of 1,200 store closures over the next three years, and a multi-billion-dollar opioid litigation settlement.

Cantor Fitzgerald Income Trust Inc. reportedly has exposure to Walgreens with 4.3% of annualized rental income. For investors in the Cantor Fitzgerald REIT, Walgreens’ financial troubles raise real concerns about what could happen when a major tenant struggles. REITs that rely heavily on Walgreens for rental income could feel the effects, and investors may want to take a closer look at how their portfolios could be impacted.

Declining Net Asset Value

As of July 31, 2024, Cantor Fitzgerald Income Trust, Inc. reported the following Net Asset Values (NAV) per share for its various share classes:

• Class I Shares: $20.40
• Class D Shares: $20.40
• Class S Shares: $20.39
• Class T Shares: $20.39
• Class TX Shares: $20.37

These figures represent a decrease of approximately 4.9% from the previous month’s NAVs.

Previously, the company reported a lower estimated net asset value (NAV) per share for the company’s common stock in March 31, 2020.

As of March 31, 2020, Class A and Class I shares have a NAV per share of $23.74, and Class T shares have a NAV of $23.72 per share. The originally offering price was $25.00 per share. Last quarter’s valuation was $25.11 for Class A and Class I shares, and $25.09 for Class T shares, as of December 31, 2019.

High Risk Investment

Non-traded real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.

Another problem often associated with alternative investment recommendations is the high sales commissions brokers typically earn – as high as 15%. For this particular investment the sales commissions and fees were estimated at more than 9%. 

Broker Due Diligence

Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.

In addition to the high risks, non-traded REITs, like Cantor Fitzgerald Income Trust Inc. often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.

Free Consultation

If you suffered losses investing in Cantor Fitzgerald Income Trust Inc. and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

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