Lightstone Real Estate Income Trust Investigation

Lightstone Real Estate Income Trust lowers distributions

The White Law Group continues to investigate claims involving broker dealers who may have improperly recommended high risk REITs like Lightstone Real Estate Income Trust to investors.

Lightstone Real Estate Income Trust, a publicly registered non-traded REIT, launched in February 2015 and raised approximately $85.6 million prior to terminating its offering in March 2017, according to filings with the SEC.

The REIT reportedly lowered its monthly distributions from an annual rate of 8.0 percent to 4.0 percent, according to SEC filings in July. The reduction will reportedly apply to the third quarter of 2019 and the board says it will evaluate the distribution policy going forward on a quarterly basis.

Liquidity Problems

Investments such as Lightstone Real Estate Income Trust are illiquid and it can be difficult to find a buyer when the investor is ready to sell.

Additionally, non-traded REITs often have high commissions, which could be a motivating factor for unscrupulous financial advisors to sell REITs such as Lightstone Real Estate Income Trust.

The total commissions and expenses make it difficult for the REIT 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.

Investors may have claims.

If you suffered losses investing in Lightstone Real Estate Income Trust and would like to discuss your recovery options, 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://whitesecuritieslaw.com.