American Finance Trust, Healthcare Trust Cancel Liquidity Events

According to reports, American Finance Trust Inc. and Healthcare Trust Inc. have decided not to pursue a listing on a national stock exchange this quarter blaming current market conditions for their decision.

Both REITs are managed by Nicholas Schorsch’s AR Capital. According to Investment News, ” [t]he company pointed to market turbulence and the expected closing of AR Capital’s sale to an affiliate of Apollo Global Management as the reason.”

Earlier this year, another Schorsch REIT, American Realty Capital Properties announced that the REIT intentionally did not correct a $23 million accounting error.

InvestmentNews reports that the FTSE NAREIT All Equity REITs index was down nearly 6% and the S&P 500 was down 8%.

The most recent AR Capital liquidity event involved Global Net Lease. Initially sold to investors for $10, it is openly trading today at $8.95. That is more than a 10% decline from its offering price.

Non-traded REITs are generally considered complex, high-risk securities products. Broker dealers that sell REITs have a responsibility to make investment recommendations that are consistent with the investor’s risk tolerance, financial objectives, investment experience and net worth.

If you were not made aware of the risk and lack of liquidity involved in non-traded REIT investments, the White Law Group may be able to help.

The White Law Group continues to investigate potential claims on behalf of individual investors to recover losses in AR Capital REITs and others . If you would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312-238-9650 for a free consultation.

For more information on The White Law Group, please visit the firm’s website at www.WhiteSecuritiesLaw.com.