The White Law Group Investigates Highlands REIT After $25 Million Self-Tender at 31% Discount to NAV
The White Law Group is looking into potential claims on behalf of Highlands REIT investors after the company launched a self-tender offer to buy back up to 125 million shares, or about $25 million worth, at $0.20 per share. That price is 31% below the $0.29 per share value Highlands REIT’s own board estimated just months earlier. If you own Highlands REIT and are trying to understand your options, our FINRA arbitration attorneys can walk you through what a self-tender at a discount to NAV means for your investment.
Highlands REIT Self-Tender Offer Details (September 2026 Update)
According to a Schedule TO and accompanying Form 8-K filed with the SEC, Highlands REIT Inc. is reportedly offering to purchase up to 125 million shares of its own stock for $0.20 per share in cash, funded from cash on hand. The offer is scheduled to expire at 11:59 p.m. ET on September 29, 2026.
Self-Tender Price Sits Well Below Highlands REIT’s Own NAV Estimate
Highlands REIT’s board most recently estimated the company’s per-share value at $0.29 on a fully diluted basis, an estimate announced in May 2026 based on an independent appraisal as of March 31 using a discounted cash flow methodology. At $0.20 per share, the self-tender prices stock at a 31% discount to that figure, on roughly 722.65 million shares outstanding. For investors who bought Highlands REIT through a broker at a much higher offering price, a buyback at less than a third of even the company’s own discounted estimate can represent a significant loss.
Secondary Market Prices Have Been Even Lower
The tender price is still a premium over where Highlands REIT shares have actually traded recently. The Stanger Report, which tracks secondary-market activity in non-traded REIT shares, recorded transactions between $0.04 and $0.14 per share for Highlands REIT stock from April through June 2026. That means investors who need liquidity outside the tender window have been selling at prices even further below the company’s NAV estimate.
Board Is Not Recommending Whether Investors Should Tender
Unlike some past actions involving Highlands REIT, the board is not telling shareholders what to do this time. The offer documents state that neither the company, its board, Computershare, nor Georgeson is making any recommendation as to whether stockholders should tender their shares, calling it a personal decision for each investor. The company says the $0.20 price reflects board discussions weighing secondary-market prices, long-term value, current real estate conditions, and how much cash it could prudently deploy.
A Different Response Than Highlands REIT Gave to a Mini-Tender in May
The neutral stance is a shift from how Highlands REIT handled a similar situation earlier this year. In May 2026, the board unanimously urged stockholders to reject an unsolicited mini-tender from MacKenzie Capital Management LP offering just $0.04 per share, an 86% discount to the same $0.29 NAV estimate. Four months later, Highlands REIT is running its own buyback at a discount to that valuation, just a smaller one, without weighing in on whether investors should accept it.
About Highlands REIT
Highlands REIT is a Chicago-based nontraded real estate investment trust holding a portfolio of non-core office, retail, and other properties. The company spun off from InvenTrust Properties Corp. in 2016. Its shares are not listed on a national exchange and trade only sporadically through secondary-market intermediaries, which is part of why pricing swings like this one matter so much to investors trying to value or exit their position.
How to Recover Investment Losses in Highlands REIT
Non-traded REITs like Highlands REIT are illiquid, difficult to value, and often unsuitable for retail investors who were not told how hard the shares would be to sell or how far the price could fall from the original offering price. Brokerage firms have a duty to recommend investments that are suitable for a client’s risk tolerance, income needs, and liquidity needs, and to clearly explain those risks before the sale. If that did not happen, the firm and the broker who sold the investment may be liable for the resulting losses. Our FINRA arbitration attorneys have handled non-traded REIT recovery claims for investors nationwide.
Contact The White Law Group
The White Law Group is a national securities fraud attorneys with offices in Chicago and Seattle. If you have losses in Highlands REIT or another non-traded REIT, call us today at (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions (FAQs)
1. How do I file a claim to recover losses from Highlands REIT?
Most brokerage account agreements typically contain a pre-dispute arbitration clause, so claims against the broker or firm that sold you Highlands REIT are usually filed and resolved through FINRA arbitration rather than in court. Arbitration can still result in a monetary recovery, and our attorneys can review your account statements to see whether you have a claim.
2. Should I tender my Highlands REIT shares before the September 29, 2026 deadline?
Highlands REIT’s own board has declined to recommend whether shareholders should tender, calling it a personal decision. Before deciding, it can help to speak with a securities attorney about whether your original investment was suitable in the first place, since that affects what recovery options remain available regardless of what you do with the tender offer.
3. Can my broker be held responsible for my Highlands REIT losses?
Yes, if the broker or firm recommended Highlands REIT without properly disclosing its illiquidity and risk, or without confirming it was suitable for your goals. Brokerage firms have a supervisory duty to oversee the investments their representatives recommend, and a failure to do so can create liability even if the firm did not directly cause the specific loss.
