Did you lose money investing in FS Credit Real Estate Income Trust (FS Credit REIT)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing in FS Credit Real Estate Income Trust (FS Credit REIT) at the recommendation of their financial advisor. If you suffered losses, 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 6/10/2020: FS Credit Real Estate Income Trust (FS Credit REIT) has postponed its 2020 annual meeting of stockholders from June 11, 2020 to July 14, 2020 at 1:00 p.m. EST.
UPDATE 4/17/2020: FS Credit Real Estate Income Trust (FS Credit REIT), a monthly NAV REIT sponsored by FS Investments that invests primarily in floating rate senior loans secured by commercial real estate properties, has declared a slightly lower net asset value per share for March 2020. Class S shares had an NAV per share of $25.15 as of March 31, 2020, compared to $25.35 per share last month (all values are rounded to the nearest hundredth). Class T shares had an NAV per share of $24.96, compared to $25.16 per share last month.,Class D shares had an NAV per share of $24.98, compared to $25.18 per share last month. Class M shares had an NAV per share of $25.04, compared to $25.25 per share last month. Class I shares had an NAV per share of $24.47, compared to $24.67 per share last month. Class F shares had an NAV per share of $24.81, compared to $25.01 per share last month. Class Y shares had an NAV per share of $24.51, compared to $24.71 per share last month. Class S shares are available through brokerage and transactional-based accounts, while Class D, Class M and Class I shares are generally available through fee-based programs. Class I shares are available for purchase by endowments, foundations, pension funds and other institutional investors. Class F and Class Y shares were offered via private offerings and are only available in the public offering through the distribution reinvestment plan. As of December 31, 2019, FS Credit REIT had a portfolio of 24 loans with a net book value of $406.6 million. The REIT, which is advised by FS Real Estate Advisor LLC and sub-advised by Rialto Capital Management LLC, raised $200.3 million in investor equity as of the fourth quarter of 2019.
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.
FS Credit Real Estate Income Trust (FS Credit REIT) Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments, such as FS Credit Real Estate Income Trust (FS Credit REIT), 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 FS Credit Real Estate Income Trust (FS Credit REIT), 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 FS Credit Real Estate Income Trust (FS Credit REIT) and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
