Strategic Realty Trust investors are very upset after finding out that the REIT has suspended its dividend. Per filings available with the Securities Exchange Commission (SEC), Strategic Realty Trust, a non-traded real estate investment trust (REIT), earlier known by the name of TNP Strategic Retail Trust, suspended its Amended and Restated Share Redemption Program (the “SRP”), effective 21st May 2020. It is to remain suspended with no redemptions being permitted until the SRP’s resumption is approved by its Board.
On March 27, 2020, the company had suspended dividend payouts owing to “the COVID-19 pandemic, its impact on the economy and the related future uncertainty.” It was noted by the company that future dividend payouts would be decided on a quarterly basis, based on the information available on the impact of the pandemic on the economy and the company. Till September 2021, the last quarterly report filed with the SEC, dividend payouts had not been restored.
Haselkorn & Thibaut is currently investigating financial advisors and broker-dealers that sold Strategic Realty Trust. Investors are encouraged to call our experience investment lawyers at 1-800-856-3352 for a free consultation.
What is Strategic Realty Trust? Street Retail Properties
Strategic Realty Trust Inc REIT is a public non-listed REIT that owns a portfolio of West Coast urban and street retail properties. Sponsored by Thompson National Properties, LLC, Strategic Realty Trust is the owner of a portfolio comprising of shopping centers anchored by well-known names like Walmart, Kroger, and Publix.
Strategic Realty Trust Inc Price and liquidity concerns
There is no let-up in the slide of its share price. Based on SEC filings again, the estimated value of the company was $3.43 per share as on the 28th of February, 2021, a steep drop from the issue price of $10 per share.
Non-traded REITs are known to lack liquidity, leading to investors looking to sell often facing challenges. Even if a seller can find a buyer, it might be only at a steep discount to the quoted NAV. Shares of Strategic Realty are believed to be trading at $0.90 per share on Central Trade and Transfer. This is one reason non-traded REITs are looked upon as a risky investment and unsuitable for conservative investors.
What is a real estate investment trust (REIT)?
REITs are trusts or governing organizations that own real estate. Real estate funds are pools of assets from investors that can be used to purchase property portfolios. There are two types: those that can be exchanged with national exchanges and those that cannot.
The REIT must distribute at least 90% of its taxable income to stockholders each year. These distributions are subject to tax up to the amount of ordinary income or capital gains. Capital gains, income, and gains received through the distribution to shareholders will also be taxable.
What is a non-traded REIT?
REITs are real estate investment trusts that manage income-producing assets. They can be financed from different asset segments or in certain areas. The national stock exchange does not trade non-traded REITs.
These funds are not usually liquid and can remain in circulation for up to eight years after purchase. Distributions may be stopped or suspended by the REIT’s trustees. Are you experiencing a decline in stock trading, REIT sales, or are you unable to renew your shares? For more information on our recovery process, contact us today.
Addressing Strategic Realty Trust investor concerns
Are you an investor staring at losses on your Strategic Real Estate investments?
Help is at hand. The securities attorneys at Haselkorn & Thibaut may be able to help you recover your losses through FINRA arbitration.
Our firm specializes in progressing investor claims for damages on account of losses incurred and is investigating the liability of the brokerage firms in selling securities such as Strategic Realty Trust, that should be considered as unsuitable for many of their clients. Brokerage firms have a responsibility to do due diligence on any investment they recommend. They also need to take into account an investor’s income, age, worth, investment goals, and experience while making a recommendation.
We have offices nationwide and are ready to help. Please call us at 1-800-856-3352 for a free consultation.