Did you lose money investing in Blackstone Real Estate Income Trust (BREIT)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing in Blackstone Real Estate Income Trust (BREIT) at the recommendation of their financial advisor. If you suffered losses investing in the investment, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the broker-dealer and/or registered representative that recommended the investment.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
UPDATE 4/23/2020: Blackstone Real Estate Income Trust (BREIT) has declared lower monthly net asset values for its Class S, Class I, Class D and Class T shares of common stock, as of March 31, 2020. In a filing with the Securities and Exchange Commission, the REIT explained that the global outbreak of COVID-19 has adversely impacted global commercial activity and contributed to significant volatility in financial markets. Class S shares, which are purchased through brokerage and transaction-based accounts, have a net asset value per share of approximately $10.46. Last month, Class S shares had a monthly net asset value of approximately $11.44 each. Class I shares, which have a net asset value per share of approximately $10.44, are sold to endowments, foundations, pension funds and other institutional investors, as well to REIT executives, directors, and their immediate family members. Last month, Class I shares had a net asset value per share of nearly $11.42. Class D shares have a net asset value per share of approximately $10.31 each and are sold through fee-based programs known as wrap accounts, and through participating broker-dealers, certain registered investment advisers, and through bank trust departments or other organizations. Last month, Class D shares had a NAV per share of approximately $11.27. Class T shares have a per share NAV of approximately $10.27 and are available through brokerage and transaction-based accounts. Last month, Class T shares had a per share NAV of $11.23.
Blackstone REIT said that the price movement was driven by unrealized mark-to-market declines across its real estate debt portfolio, as well as reduced valuations of its real estate properties as determined through its monthly valuation process. The company noted that reduced property values were generally attributable to “anticipated slower rental growth and rent relief requests, which have been modest to date, as well as anticipated reductions in projected lease-up of vacant space.” The company also pointed to decreased cash flow in its hospitality assets due to closures of two full-service hotels and reduced occupancy at its select-service properties.
UPDATE 4/6/2020: Blackstone Real Estate Income Trust (BREIT) updated the monthly net asset values for its Class S, Class I, Class D and Class T shares of common stock, as of February 29, 2020. Class S shares, which are purchased through brokerage and transaction-based accounts, have a net asset value per share of approximately $11.44. Last month, Class S shares had a monthly net asset value of approximately $11.50 each. Class I shares, which have a net asset value per share of approximately $11.42, are sold to endowments, foundations, pension funds and other institutional investors, as well to REIT executives, directors, and their immediate family members. Last month, Class I shares had a net asset value per share of nearly $11.48. Class D shares have a net asset value per share of approximately $11.27 each and are sold through fee-based programs known as wrap accounts, and through participating broker-dealers, certain registered investment advisers, and through bank trust departments or other organizations. Last month, Class D shares had a NAV per share of approximately $11.33. Class T shares have a per share NAV of approximately $11.23 and are available through brokerage and transaction-based accounts. Last month, Class T shares had a per share NAV of $11.29.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
What are Real Estate Investment Trusts (REIT)?
A Real Estate Investment Trust (“REIT”) is a complex investment that is generally only suitable for sophisticated high-net worth investors, and then only in certain circumstances. A REIT is an entity that owns, and may also manage, income producing real estate. REITs pool capital from multiple investors and use it to purchase properties, similar to mutual funds and other pooled investment vehicles.
A Real Estate Investment Trust can be offered in several different forms. A Public Exchange Listed REIT is registered with the U.S. Securities and Exchange Commission (“SEC”) and is publicly traded on a national securities exchange. A Public Non-Listed REIT is registered with the SEC, but does not trade on a major securities exchange. Finally, a Private REIT, also known as a private-placement REIT, is not registered with the SEC and does not trade on a national securities exchange.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Blackstone Real Estate Income Trust (BREIT) Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments, such as Blackstone Real Estate Income Trust (BREIT), and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as Blackstone Real Estate Income Trust (BREIT), or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in Blackstone Real Estate Income Trust (BREIT) and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
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