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Written by 8:42 pm Blog, Current Investigations

Inland Real Estate Income Trust Inc. – Update on Investigation

Inland Real Estate Income Trust Inc. Update on Investigation, featured by top securities fraud attorneys, The White Law Group

Inland Real Estate Income Trust Lawsuits for Investment Loss Recovery  

The White Law Group continues to investigate FINRA arbitration claims involving brokerage firms who may have unsuitably recommended Inland Real Estate Income Trust (Inland REIT) to investors.  If you have suffered Inland Real Estate Income Trust losses, the securities attorneys at The White Law Group may be able to help you.  

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

Inland Real Estate Income Trust, Inc. acquires and manages a portfolio of commercial real estate investments located in the United States, according to Bloomberg. It primarily focuses on acquiring retail properties.  

Tender offer price indicates losses for Inland REIT investors  

According to filings with the SEC, Comrit Investments 1 LP extended a tender offer to purchase shares of the REIT in July 2022 for recently sold for $11.18 per share. This may indicate significant losses for investors as the company conducted a 1-for-2.5 reverse stock split in 2018, resulting in a final offering price of $25.00 per share. Shares were originally sold for $10 per share.   

According to the 8K filing on March 4, 2022, the Board approved $20.20 as the estimated per share net asset value of the Company’s common stock as of December 31, 2021.  However, if shares are repurchased both ordinary repurchases and repurchases for death or qualifying disability will be at $16.16 per share (80% of $20.20). 

See: Inland Real Estate Income Trust Lowers Net Asset Value (NAV) 

In 2020, Inland REIT suspended distributions and rescinded the first quarter distribution that was expected to be paid on June 1, 2020 to stockholders of record as of May 29, 2020. The company also suspended its distribution reinvestment plan and share repurchase plan until further notice indicating that the suspensions are temporary and cited uncertainty surrounding the COVID-19 global pandemic as the reason. 

Is a Non-traded REIT a suitable investment for you? 

Non-trade REITs are not suitable for all investors. High commissions could be a motivating factor for unscrupulous financial advisors to sell the REIT 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 non-traded REITs to perform in line with the market.  

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.  

Free Consultation with a Securities Attorney  

If you invested in Inland Real Estate Income Trust and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.  

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

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

   

  

  

 

 

 

 

 

 

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