Are you worried about your investment in Brookfield Real Estate Income Trust?
The securities attorneys at The White Law Group are investigating claims involving non-traded REITs such as Brookfield Real Estate Income Trust , which may expose investors to overvaluation concerns, liquidity restrictions, and valuation uncertainty.
Non-Traded REITs Overvalued?
In May 2023, Investment News raised concerns that some non-traded REITs could be overvalued by as much as 30%, particularly those with significant commercial real estate exposure. This comes as remote work continues to reduce office demand and as higher interest rates pressure valuations.
The Dow Jones U.S. Real Estate Index fell 15.7% over the past year, while the S&P 500 gained slightly more than 1% over the same period. Adding to concerns, CoStar Group reported a record-high U.S. office vacancy rate of 12.9% in Q1 2023, surpassing even levels seen during the 2008 financial crisis.
For investors, these trends highlight the risks of limited redemption programs and the liquidity trap many face with non-traded REITs.
Risk Factors of Investing in Brookfield Real Estate Income Trust
- Limited Operating History: Transition from Oaktree management and recent restructuring creates uncertainty.
- Liquidity Limits: No public trading market; redemptions are subject to caps and may be suspended.
- Distribution Uncertainty: Payments may come from sources other than operational cash flow.
- Valuation Concerns: NAV-based pricing may not reflect actual liquidation values.
- Leverage Exposure: Borrowing increases loss risks in down markets.
- Commercial Real Estate Risk: Rising vacancies, tenant defaults, and market downturns can sharply reduce asset values.
Complex Investment Products – Liquidity Issues
Non-traded REITs are complex and illiquid products. Investors who attempt to exit often struggle to find buyers, and those who succeed may face substantial losses. For more, see: Non-traded REITs “Liquidity Issue”.
Broker Due Diligence
Under FINRA rules, brokerage firms must carefully vet and disclose risks before recommending investments like Brookfield REIT. Unsuitable recommendations or inadequate due diligence can give rise to liability, allowing investors to pursue recovery of their losses.
Free Consultation
If you are concerned about your investment in Brookfield Real Estate Income Trust, you may have recovery options.
Contact The White Law Group at 888-637-5510 for a free consultation, or visit www.WhiteSecuritiesLaw.com for more information.
The White Law Group is a national securities fraud, arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
FAQs – Brookfield Real Estate Income Trust
1. Can I sell my shares of Brookfield Real Estate Income Trust on the open market?
No. Shares are not publicly traded. The only option for liquidity is the company’s share repurchase program, which can be capped or suspended.
2. Why are investors worried about overvaluation in non-traded REITs?
Analysts warn that some non-traded REITs may be overvalued by up to 30%, particularly those exposed to office real estate, where vacancies are at record highs.
3. What are my recovery options if I lost money in Brookfield REIT?
Investors may pursue claims through FINRA arbitration, which often provides a faster, more direct recovery path than joining a class action lawsuit.
