Did you lose money investing in Inland Real Estate Income Trust?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing in Inland Real Estate Income Trust, a publicly registered non-traded real estate investment trust, 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 7/13/2020: Inland Real Estate Income Trust has provided its shareholders with a COVID-19 related business update. The company noted that while 3 percent of its tenants remain fully closed as of June 30, 2020, many more are operating in a materially reduced capacity as a result of restrictions on non-essential businesses. Rent collections for the month of April were at 75 percent, while May and June were 66 percent and 59 percent, respectively. The company indicated that it has negotiated rent deferral agreements with tenants representing 39 percent of its annualized base rent as of June 30, 2020. Inland Real Estate Income Trust currently has a $350 million credit facility comprised of a $150 million term loan and a $200 million revolving line of credit. The company drew an additional $24 million on its revolving line of credit in April, bringing the outstanding balance on the credit facility to $255 million. The company said that the draw was made in order to maintain a higher level of liquidity to meet its mortgage payments and pay other operating expenses amid reduced rental receipts. Debt service has been paid on its 18 non-recourse mortgage loans for the months of April, May, and June, the company noted. In late May, the company suspended distributions, as well as its distribution reinvestment plan and share repurchase plan until further notice.
UPDATE 5/28/2020: Inland Real Estate Income Trust has suspended distributions and rescinded the first quarter distribution that was expected to be paid on June 1, 2020 to stockholders of record as of May 29, 2020. The company also suspended its distribution reinvestment plan and share repurchase plan until further notice. The company indicated that the suspensions are temporary and cited uncertainty surrounding the COVID-19 pandemic as the reason.
UPDATE 4/6/2020: The board of Inland Real Estate Income Trust, a publicly registered, non-traded real estate investment trust, has changed both the record date and the expected payment date of the first quarter of 2020 distribution in order to conserve cash, citing the uncertainty of the coronavirus (COVID-19) pandemic. The nearly $0.23 per share distribution was supposed to be paid on April 1, 2020 to stockholders of record as of the close of business on March 31, 2020. The company has revised the payment date to June 1, 2020 to stockholders of record on May 29, 2020, however, the company indicated that it may further delay these dates as the situation surrounding COVID-19 develops.
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.
Inland Real Estate Income Trust Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments, such as Inland Real Estate Income Trust, 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 Inland Real Estate Income Trust, 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 Inland Real Estate Income Trust 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.