Many of us worry about losing money with Highlands REIT losses. We know this concern well, as we have faced similar doubts and learned that their share price dropped to just $0.16 per share in late 2021.
Through our research, we break down why these losses happened and how they impact investors like us. See what went wrong before you make your next investment choice.
Key Takeaways
Table of Contents
- Highlands REIT suffered losses from 2016 to 2024. In 2017, it posted its biggest gain of $174 million. Losses peaked in 2016 at $64 million and again during the pandemic with a $34 million loss in 2020.
- Non-core assets such as vacant prisons and undeveloped land faced legal problems and market risks. These idle properties drained resources but did not increase value for investors.
- The Covid-19 pandemic worsened financial issues between 2020 and 2022. Tenants could not pay rent, which led to more foreclosures and lower asset values.
- Investors saw share prices fall from $0.26 in early 2017 to $0.16 by December 2021 on OTC markets. For example, a Texas prison property sold for only $3.6 million after being bought at $21.1 million.
- Many investors now seek legal help due to lack of risk disclosure or unsuitable broker advice about non-traded REITs like Highlands; firms like SSEK Law recovered millions for other clients through FINRA arbitration.
Overview of Highlands REIT Losses
We can see a steady decline in Highlands REITâs financial performance over the past decade. These losses raise important questions about asset management and investment risks.
Financial performance and trends from 2015 to 2025
Highlands REIT has seen major shifts in financial performance from 2015 to 2024. We need to examine these results to understand how our investments have been affected over time.
| Year | Profit/Loss | Key Takeaways |
|---|---|---|
| 2015 | Profit of $14 million | Strong earnings at the start of the period |
| 2016 | Loss of $64 million | Sharp downturn, major loss recorded |
| 2017 | Profit of $174 million | Strong rebound, largest gain in the period |
| 2018 | Profit of $25 million | Significant profit, though less than 2017 |
| 2019 | Profit of $5 million | Earnings declined, minimal profit made |
| 2020 | Loss of $34 million | Pandemic year triggered heavy losses |
| 2021 | Loss of $13 million | Losses continued, but at a smaller scale |
| 2022 | Loss of $8 million | Negative trend persisted, though losses narrowed |
| 2023 | Loss of $10 million | Losses increased again |
| 2024 | Loss of $1 million | Negative figure, but smallest loss since 2020 |
Recent years show a shift from profit into recurring losses. The largest profit came in 2017 with $174 million. The steepest loss hit in 2016 at $64 million. Pandemic effects are clear in 2020 with a $34 million loss. Losses have continued through 2024, affecting our portfolio value and confidence as investors.
Key challenges, including non-core portfolio issues
After reviewing financial performance and trends from 2015 to 2025, we see that key challenges have weighed down our Real Estate Investment Trust. As a non-traded REIT, Highland REIT faces illiquidity and higher investment risk.
Several properties went into foreclosure because of legal disputes and operational challenges. Retail property holdings in the portfolio are exposed to shifting market trends and lack buyers in slow markets.
We face issues with non-core assets like a long-vacant correctional facility and undeveloped land in Florida. These properties sit idle or require major improvements that drain resources without adding value for investors.
Our non-core portfolio needs substantial upgrades before it can generate returns.
Limited liquidity makes selling these unwanted assets difficult, while vacant buildings increase holding costs year after year. Such ongoing struggles make it harder for us to protect investor funds and keep up with changes in the real estate market.
Causes of Highlands REIT Losses
We face several challenges that affect real estate returns. Changes in the market can lower our earnings and asset values.
Impact of the pandemic on real estate investments
Covid-19 caused a sharp downturn in real estate. Many tenants could not pay rent, which led to a drastic drop in revenue for us as investors. Retail sector challenges grew worse each month that shops stayed closed or saw fewer customers.
Our properties under Highlands REIT began to face foreclosure as losses mounted and debt piled up.
We saw financial instability rise between 2020 and 2022 due to pandemic repercussions. Non-core assets turned into major risks because they no longer attracted reliable tenants or income streams.
Revenue decline forced us into difficult decisions about holding or selling unviable properties, putting our portfolio at greater risk of investment losses and further debt accumulation.
Risks of non-traded REITs and broker recommendations
Non-traded REITs like Highlands REIT often hold troubled assets, which can lead to high investment risks. Many of us have seen no dividend payments for years, causing frustration and concern about our portfolios.
High executive compensation sometimes appears tied more to personal gain than strong asset management or performance. Some financial advisors and brokers may not share vital information about these risks or even mislead investors about potential returns.
Brokers earned steep commissions by selling non-traded REITs such as Highlands, yet many of us never saw clear disclosure about these fees.
We depend on honest guidance from our financial advisors for portfolio management and selecting Real Estate Investment Trusts (REITs). Misrepresentation of key details puts investor money in danger and damages trust in the process.
We see examples where due diligence is lacking, especially with non-traded REIT investments from 2015 through 2025. Investor losses grew as problems surfaced within the non-core portfolio that should have raised red flags earlier.
We must demand fair disclosure so we understand all the real estate investment risks before moving forward with any product recommendation.
Impact on Investors
We watch our account values drop as Highlands REIT reported weak earnings. Many of us raise concerns and follow new court cases for possible solutions.
Financial losses and diminished portfolio value
We have seen our portfolio value drop sharply due to Highlands REITâs poor performance. The share price fell from $0.26 per share in early 2017 to just $0.16 in December 2021 on OTC markets.
Many of us suffered losses after watching key assets lose value, such as the Texas prison property that sold for only $3.6 million, far below its original purchase price of $21.1 million.
As investors, we face illiquidity risks with non-traded REITs like Highlands REIT, making it hard to recover funds or sell shares quickly. Some of us seek legal representation and recovery through actions led by law firms for these financial losses and diminished securities valuations caused by these investments.
Client testimonials highlight how effective experienced legal teams are at helping investors pursue recovery options under current market conditions.
Investor concerns and legal actions
After seeing major drops in portfolio value, we worry about our next steps and what legal options exist. Many of us face losses due to unsuitable broker recommendations or lack of proper risk disclosure tied to Highlands REIT investments.
FINRA arbitration offers a path for us to seek compensation if brokers failed their duties.
We take comfort knowing law firms offer free consultations and do not charge any fees unless they recover funds for us. We can reach SSEK Law Firm directly at (800) 259-9010 or use their online form for guidance on investor protection, claims, and financial misconduct cases.
Jonathan Kurta also provides free case assessments at 212-658-1502 or [email protected]. Investors have already recovered $16.75 million from ARC NYC REIT claims and $9.3 million from supervision failures through such actions.
Conclusion
We see how Highlands REIT losses affected our investments. Poor property choices and market risks led to lower share values. Many of us are now facing big financial setbacks. We must review such investment options more carefully in the future.
If we have concerns about our rights as investors, it is smart to seek professional advice.
