American Healthcare REIT Inc. Potential Liquidation
Are you concerned about your investment American Healthcare REIT, Inc (formerly known as Griffin-American Healthcare REIT IV)?
The White Law Group continues to investigate securities lawsuits involving the liability that broker dealers may have for improperly recommending non-traded REITs such as American Healthcare to investors.
American Healthcare REIT, Inc., a non-traded real estate investment trust, reportedly acquires, owns and operates a portfolio of clinical healthcare real estate properties, focusing primarily on medical office buildings, senior housing, skilled nursing facilities, hospitals and other healthcare-related facilities.
Last May we reported some concerns for investors i.e., that distribution payments were cut in half — from an annualized rate of $0.60 per share to $0.30 per share beginning with the April 2020 distribution, which was to be paid on May 1, 2020. In addition, the share repurchase plan was suspended except for requests resulting from the death or qualifying disability of stockholders.
On September 16, 2022, the company filed a form S-11 with the Securities and Exchange Commission for a potential underwritten public offering to list its common stock on the New York Stock Exchange.
The company noted in a letter to stockholders that a public listing was not guaranteed, and that market conditions and other factors beyond its control would play a role in a future listing. The company also noted that it would seek to acquire “AHR” as its ticker symbol, if the public listing was achieved.
Last October the company announced that it had completed its merger with Griffin-American Healthcare REIT III, Inc. in a tax-free, stock-for-stock transaction that created a combined company of healthcare real estate assets, as we previously reported: see Griffin-American Healthcare REIT III Liquidation.
According to a letter to stockholders on March 14, 2022 the REIT’s board recommended that shareholders reject a recent tender offer from Comrit Investments I LP to purchase shares for $6.59 per share. The company claims that American Healthcare REIT’s NAV is currently $9.29 per share as of December 31, 2021.
How to Recover investment losses involving a Non-Traded REIT
The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.
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.
Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%. 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.
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.
If you are concerned about investment losses in American Healthcare REIT and would like a free consultation with a securities attorney, please call The White Law Group at 888-647-5510.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
For more information on The White Law Group, please visit www.whitesecuritieslaw.com.
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