Mall REITs drop in value as more retailers close their doors.
According to reports, the news on the Toys “R” Us bankruptcy this week has sent the share price of mall REITs, such as Washington Prime Group (WPG), spiraling downward.
Washington Prime Group Inc. is a real estate investment trust that invests in shopping centers. The company is organized in Indiana with its headquarters in Columbus, Ohio. The REIT is a spinoff of “less desirable assets” of the Simon Property Group, a mall REIT, according to reports.
According to Business Insider, “At $6.26, shares {of Washington Prime Group} are down 13% year-to-date, 25% from a year ago, 55% from August 2016, and 71% from the peak of $21.49 in May 2014.”
It appears likely that investors will see future dividend cuts. With shares down, the company will likely need to preserve capital.
With the decline of malls and shopping centers and the increase in online shopping, the future for Retail REITs, such as Washington Prime Group, is not bright.
Investigating Potential Claims
The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended Washington Prime Group to investors.
Broker-dealers have a legal obligation to act in the best interest of their clients and have to demonstrate adequate due diligence on an investment before recommending the investment to a client. Furthermore, recommendations should be consistent with an individual’s age, risk tolerance, financial objectives, and investment knowledge.
Broker-dealers that have not done their fiduciary duty or adequately disclose the risks when selling investments may be held liable for damages lost through FINRA arbitration claims.
If you are concerned about your investment in Washington Prime Group, The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.
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 Franklin, Tennessee.
For more information on The White Law Group, visit http://whitesecuritieslaw.com.
Tags: Mall REITs losses, Retail REITs losses, Washington Prime Group class action, Washington Prime Group complaints, Washington Prime Group investigation, Washington Prime Group lawsuit, Washington Prime Group Losses, Washington Prime Group share price, Washington Prime Group Toys R us, Washington Prime Group value, WPG dividends cut, WPG REIT Last modified: March 23, 2018
