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Written by 10:55 am Blog, Investment Loss Recovery

CIM Real Estate Finance Trust Liquidation

CIM Real Estate Finance Trust Liquidation, featured by Top Securities Fraud Attorneys, The White Law Group

CIM Real Estate Finance Trust: Tender Offer Price well below NAV

Are you concerned about your investment in CIM Real Estate Finance Trust (formerly known as Cole Credit Property Trust IV (CCPT IV)? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

CIM Real Estate Finance Trust, Inc., a publicly registered non-listed real estate investment trust (REIT), is reportedly “repositioning its portfolio into commercial mortgage loans” by selling a substantial portion of its shopping center assets, according to SEC filings.

Tender Offer Price $4.21 per Share 

According to a filing with the SEC, Comrit Investments 1 LP, a Tel Aviv-based investment fund, has extended an unsolicited tender offer to purchase up to 22 million shares of CIM Real Estate Finance Trust Inc., for $4.21 per share. This may indicate significant losses for investors.

Declining Net Asset Value (NAV)

According to filings with the SEC, the REIT’s NAV continues to decline. The board has reportedly declared net asset value (NAV) per share for CIM REIT was estimated at $6.57 on September 30, 2022. Previously the REIT’s shares were valued at $7.20 per share as of March 31, 2022, and shares originally sold for $10.00 each.

According to filings with the SEC, CIM has sold the remaining property in its $1.3 billion sale of 81 open-air shopping centers to The Necessity Retail REIT Inc. (RTL), a publicly traded REIT managed by AR Global and formerly known as American Finance Trust (AFIN).   The total portfolio sale price included up to $1.27 billion in cash, $53.4 million in Necessity Retail REIT common stock, and additional consideration based on certain performance measures of the sites during a 180-day period post-closing.

Lack of Liquidity – A Risk of Non-Traded REITs  

Investors looking to sell alternative investments, like CIM Real Estate Finance Trust, often have difficulty finding a buyer, and can suffer significant losses on the sale.  

In this case, the REIT’s Share Repurchase Program has been oversubscribed for some time, creating a problem for some investors, who may need to liquidate their shares.  

Your financial advisor has a responsibility to perform due diligence on any investment before recommending it to you. If your advisor unsuitably recommended CIM Real Estate Finance Trust and you lost money, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claims against the brokerage firm that sold you the investment.  

The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to resolve disputes with their brokerage firm. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.  

For a free, no obligation consultation with a securities attorney, please contact the offices of The White Law Group at 1-888-637-5510.  

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

Visit the firm’s homepage to learn more about the firm’s representation of investors. 

 

   

   

  

  

Tags: , , , , , , , , , , , , , , Last modified: December 4, 2023