InvenTrust Properties Corp.: Secondary Market Offer

Concerned about investment losses in InvenTrust Properties Corp.?

Have you suffered investment losses in InvenTrust Properties (formerly Inland America)? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

According to Bloomberg, InvenTrust Properties Corp. operates as a real estate investment trust. The Company focuses on acquiring and developing a diversified portfolio of commercial real estate properties, such as retail properties, offices, and industrial buildings. InvenTrust Properties serves customers in the United States.

InvenTrust Properties Corp. (f/k/a Inland American Real Estate Trust) launched IPO for up to $5 billion of common stock in August 2005 and raised approximately $4.8 billion in this offering. The REIT began a second public offering on August 1, 2007, and closed this offering on April 6, 2009, with approximately $8.3 billion raised in both offerings.

The company recently lowered its quarterly distribution by 48%, from $3.25 per share to $1.68 per share. As a result, the annualized distribution yield based upon current NAV is currently just 2.1%.  In December, InvenTrust purchased about 89 million shares of its common stock at $2.66 per share through a “Dutch Auction” tender offer. The company has not disclosed any plans to do so again.

The Trouble with Non-traded REITs

The trouble with non-traded real estate investment trusts (REITs) like, InvenTrust Properties Corp., is that they lack liquidity and are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITs are more complex and are better suited for investors that can afford to risk the total losses of their investment.

Brokers often earn extremely high sales commission selling non-traded REITs, sometimes as high as 15%. Unfortunately, the high sales commissions associated with non-traded REITs often provide some broker dealers with enough incentive to overlook suitability requirements.

Investors looking to sell a private placement investment often have difficulty finding a buyer, and can suffer significant losses on the sale. CFX Alternative Trading, a secondary market for private placements, is offering shares of InvenTrust Properties Corp. for as little as $2.05 per share.

Brokers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor and are in line with the clients risk tolerance, age, net worth, and investment experience.

If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses through FINRA arbitration.

To determine whether you may be able to recover investment losses incurred as a result of your purchase InvenTrust Properties Corp., please contact 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.