Inland REIT Reports a 3.5% Decline in Net Asset Value (NAV)

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.  

The board of Inland Real Estate Income Trust Inc., a non-traded real estate investment trust (REIT), has reported a 3.5% decline in its estimated net asset value (NAV) per share from $19.86 in 2022 to $19.17 as of December 31, 2023.

This NAV assessment, supported by CBRE Capital Advisors Inc., reflects uncertainties in the economy, competition from internet retailers affecting tenant revenue, and other industry-specific factors.

According to Central Trade and Transfer, a secondary market for non-traded investments, shares of Inland REIT have recently sold for $12.00 per share. 

Inland Real Estate Income Trust Inc. 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.    

Declining Net Asset Value – Inland Real Estate Income Trust 

The net asset value of Inland Real Estate Income Trust has continued to decline, in 2015, the shares were reportedly worth $23.25 per share, but as of December 31, 2023, the company estimates the share value is $19.17 per share. 

According to the company’s filings with the SEC, its Share Repurchase Program (SRP) is complex and limited. It has reportedly been amended four times since inception and according to the board of directors may, at any time, amend, suspend or terminate the SRP. 

Charter Amendments   

In 2021 Inland REIT shareholders approved eleven charter amendment proposals to align the REIT’s charter with those of publicly traded REITs. The company noted at the time that the proposed amendments would allow greater flexibility in pursuing liquidity for stockholders, including a potential listing on a national securities exchange.    

Suspended Distributions

In 2020, the REIT suspended distributions and rescinded the first quarter distribution that was expected to be paid on June 1, 2020, to stockholders. The company also suspended its distribution reinvestment plan and share repurchase plan after uncertainty surrounding the COVID-19 global pandemic.   

Risks of Non-Traded REITs- Inland Real Estate Income Trust

Unfortunately, financial advisors/brokerage firms that sell non-traded REITs such as Inland Real Estate Income Trust, sometimes understate or misrepresent the risks and liquidity problems. It can be difficult to sell your shares.  

High commissions could be a motivating factor for unscrupulous financial advisors to sell the REIT.  The total commissions and expenses make it difficult for non-traded REITs to perform in line with the market.  

Suitability Rules – FINRA Rule 2111 

 If your broker has made unsuitable investment recommendations, and you have suffered losses, you may be able to file a claim with FINRA to seek resolution through arbitration.  

The suitability rule (FINRA Rule 2111) is a regulation imposed by the FINRA, the securities regualtor, that requires brokers and financial advisors to recommend investments that are suitable for their clients based on their financial situation, investment objectives, risk tolerance, and other relevant factors. 

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Brokerage firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim. 

FINRA Arbitration Attorneys  

FINRA Dispute Resolution is the forum for almost all disputes between investors, firms and brokers.    

Brokerage firms typically have a “Arbitration Provision” on the forms you sign on the day you open your account – often in fine print. This provision provides that if you have a dispute over your account, you agree to arbitrate your dispute before either FINRA or one of the exchanges, like the NYSE.  

Fortunately, FINRA arbitration is usually faster and less costly than court litigation. Most arbitration panels are comprised of 3 members. At the final hearing, after your case is presented and after the defense has presented their case, the arbitration panel will make a determination if you are entitled to any recovery, and if so, how much. Many securities cases end with a settlement.  

If you invested in Inland Real Estate Income Trust and would like to discuss your recovery options, please call the FINRA Arbitration 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.