Haselkorn & Thibaut are investigating claims against financial advisors and their broker-dealers that sold The Inland Real Estate Income Trust, Inc. (IREIT) for having improperly recommended it to some of their clients. It is alleged that many retail investors might not adequately understand the responsibility that broker-dealers, through whom they make investment decisions and whose advice they often rely on, have towards them.
Broker-dealers are required to ensure that an investment being recommended is suitable for the profile and investment objectives of the client and adequately account for their net worth, investment experience, age, and risk tolerance. Failure to do so leaves them open for claims in case such recommendations lead to investment losses for the client.
What is IREIT is a Real Estate Investment Trust (REIT?
Based on information available on its website, IREIT is a Real Estate Investment Trust (REIT) that was formed with the objective of acquiring a portfolio of commercial real estate, with a focus on grocery-anchored retail, anywhere in the United States, either directly or indirectly.
The economic occupancy of IREIT was at 93.8 percent on 30th September 2020.
A letter to shareholders dated 9th January noted that “although all tenants of the Company have been impacted differently by the government shutdowns enacted to help mitigate the spread of the virus, 91 percent of rents were collected in November, slightly higher than the national retail rent collection average of 89 percent,” seemingly in support of their contention of the pandemic had caused “impactful and long-lasting effects on commercial real estate.”
As a cash preservation measure, the company has suspended distributions as well as the distribution reinvestment plan. The share repurchase program of last spring also stands suspended. There is no information on the likelihood of these programs being resumed.
Non-Traded REIT Lawsuits
Non-traded REITS, like IREIT, are considerably more complex than traditional stocks and mutual funds and are also riskier investments, apart from their lack of liquidity. To compound the issue, broker-dealers often fail or neglect to adequately make their clients aware of these risks.
One of the best ways for investors to recover losses is through a Financial Industry Regulatory Authority (FINRA) customer arbitration claim. It is typically faster and cheaper than traditional lawsuits.
A national securities fraud, arbitration, regulation/compliance, and investor protection law firm with offices in New York, Florida, Arizona, North Carolina, and Texas, Haselkorn & Thibaut has represented investors in numerous claims against brokerage firms in such cases.
If you have an investment in IREIT and would like to understand if you have been at the receiving end of such advice from your broker and, if yes, recovery options available, we encourage you to contact us for a free consultation at 1-800-856-3352.