Written by The White Law Group• June 14, 2020• 6:01 pm• Blog, Current Investigations

Hines Global Income Trust, Decrease in Net Asset Value (NAV)

Hines Global Income Trust Investment Losses

The White Law Group continues to investigate FINRA arbitration claims involving non-traded REITs such as Hines Global Income Trust.

Unfortunately for investors it appears that many financial advisors/brokerage firms that sold non-traded REITs such as Hines Global Income Trust, may have understated or misrepresented the risks and liquidity problems.

The non-traded REIT, formerly known as Hines Global REIT II, Inc., was incorporated in Maryland on July 31, 2013, to invest in a diversified portfolio of quality commercial real estate properties and other real estate investments and also to invest in real-estate related securities, according to its website.

According to filings with the SEC, the REIT has recently seen a decline in Net Asset Value of its common stock from $10.71 per share to $9.71 per share as of April 30, 2020. According to the company, the NAV per share “does not include any liability for distribution and stockholder servicing fees that may become payable after April 30, 2020, since these fees may not ultimately be paid in certain circumstances…”

Hines Global further noted in the filings that the Coronavirus (COVID-19) pandemic has had, and is expected to continue to have, an adverse impact on global commercial activity and has contributed to significant volatility in financial markets and it may be difficult to predict “the long term impact it will have on commercial real estate markets and our investments, it presents material uncertainty and risk with respect to the current and future performance and value of our investments.”

Filing a Complaint Against your Brokerage Firm

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

High commissions could be a motivating factor for unscrupulous financial advisors to sell non-traded REITs regardless of whether the investment is in line with the client’s investment objectives and profile. Moreover, the total commissions and expenses make it difficult for the REIT to perform in line with the market.

Free Consultation with a Securities Attorney

If you are concerned about your investment in Hines Global Income Trust, you may be able to file a complaint against your brokerage firm. Please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

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

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.