Inland Real Estate Income Trust, Inc., a non-traded real estate investment trust (REIT), has just announced it is changing the record date and expected payment date of the first quarter 2020 distributions.
This move is believed to be an effort to conserve cash based on the uncertainty relating to the COVID-19 pandemic. As of now, for investors owning the Inland REIT on May 29, 2020, they will receive a distribution on June 1, 2020.
Postponing the first quarter 2020 distribution to June 2020 effectively kicks the can down the road and might help temporarily preserve cash for the company, but what does it do to the investors looking for that income stream? Also, what about the seemingly ominous warning that was also included for investors, indicating, if the company needs not to pay reduced distributions in future quarters, they hope it will be only temporary?
Although the most recent sponsor stated value was $18.15/share, the most recent trading range reported by a secondary market source was between $14.50 and $14.76 share. See Central Trade and Transfer. However, the stated value and last marks from CTT are all before the worst-performing quarter in the market that just concluded.
For investors who relied upon the income stream from the distributions, this is likely a problematic set of events to contend with, as they cannot get out of the investment and get their principal, nor will they receive the income they expected. Meanwhile, the current secondary market prices are reflecting a decline in the value of this REIT (and that was before market volatility and drop in the first quarter of 2020). Read More – Coronavirus Losses
Inland Real Estate Income Trust REIT Losses
For some investors, a private FINRA arbitration customer dispute enables them to bring a claim and potentially recoup their investment losses from Inland Real Estate Income Trust (REIT). These customer disputes typically involve only paper discovery and no depositions, and they are a faster and more efficient alternative to traditional court litigation, as they provide a private forum to resolve disputes more quickly and efficiently.
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Haselkorn and Thibaut, P.A. is a nationwide law firm specializing in handling investment fraud and securities arbitration cases. The law firm has offices in Palm Beach, Florida, on Park Avenue in New York, as well as Phoenix, Arizona, and Cary, North Carolina. The two founding partners have nearly 45 years of legal experience.
Haselkorn & Thibaut, P.A. has filed numerous (private arbitration) customer disputes with the Financial Industry Regulatory Association (FINRA) for customers who suffered investment losses relating to issues similar to those matters mentioned above. There are typically no depositions involved, and those cases are usually handled on contingency with no recovery, no fee terms.
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