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Written by 1:20 pm Current Investigations

InvenTrust Properties Corp. Tender Offer *UPDATED* September 2021

United Development Funding III

The White Law Group is investigating potential claims involving InvenTrust Properties Corp.

Concerned about investment losses in InvenTrust Properties Corp.?

Have you suffered losses investing in InvenTrust Properties Corp. (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.

Investors looking to sell a private placement investments often have difficulty finding a buyer, and can suffer significant losses on the sale.

According to a letter from Mackenzie Realty Capital on April 2,  a recent tender offer of $1.42 per Share was made. Unfortunately for investors, this appears to be a significant loss on their capital investment.

InvenTrust Properties Corp. 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.

*UPDATED* September 25, 2021 InvenTrust Stock Split & 

On August 5, 2021, the company effected a 1-for-10 reverse stock split of its common stock, where every 10 shares of outstanding common stock were changed into one share of common stock. Prior to the reverse stock split, the company’s most recent net asset value per share was $2.89 as of December 1, 2020, thus the new estimated value is $28.90 per share. 

According to Central Trade and Transfer, a secondary market for non-traded REITs, shares of InvenTrust are currently listed to sell for $17.50 per share. This may indicate losses for investors.

On September 20, InvenTrust Properties Corp. announced that the company will pursue a listing on the New York Stock Exchange in order to provide liquidity to its shareholders. The listing is subject to, among other things, the Company meeting the NYSE listing requirements and receiving NYSE listing authorization as well as market conditions and changes, and there can be no assurance as to whether, or when, the listing may be completed.

The Risks of  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.

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.

Free Consultation with a Securities Attorney

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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.


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