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Robert Rex
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This blog is written by Robert H. Rex, Esq. who is a securities attorney and a passionate advocate for investors rights. With over 30 years of legal experience, 25 of which have dealt almost exclusively with the recovery of stockmarket and investment losses for mostly elderly clients, he and his... More
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Rex Securities Law
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Rex Investment Loss Recovery Blog
  • Company Slashes Value Of Wells TImberland REIT  0 comments
    Dec 17, 2012 5:40 PM

    Following in the footsteps of many other non traded real estate investment trusts, on December 14, 2012, the board of directors of Wells Timberland REIT lowered the estimated value to $6.65. This represents a substantial reduction from the original offering price of $10 per share, however, investors will be further shocked to learn that the real value (vs. the company's estimated value) is even less. As we have previously reported (here and here) , since Wells Timberland is a non traded REIT the only market is likely to be one of the privately operated secondary markets where it may trade for a discount of 25-35% from the company's estimated value. Investors who paid $10 on the offering may find that actual value is less than half of that now.

    You may recall that last year, in November 2011, FINRA fined Wells Investment Securities, Inc. $300,000 for using misleading marketing materials in the sale of Wells Timberland REIT, Inc.Trust. Here is a link to FINRA's press release.

    Wells Securities was the wholesaler for the public offering of Well Timberland REIT, which invested in timber producing real estate. FINRA found that from May 2007 to September 2009, Wells distributed over 100 advertising and marketing materials that contained misleading, unwarranted or exaggerated statements. In addition the Wells ads did not make it clear that the investment did not yet qualify as a REIT for tax treatment, one of the selling points highlighted to potential investors.

    Many investors were sold Wells Timberland and other non exchange traded REITs with the promise of steady and dependable distributions of income and with no warning that liquidity may be an issue. If you made your investment based upon misrepresentations from the selling broker, you may be able to recover all or part of your losses through FINRA arbitration.

    Robert H. Rex, Esq. been helping investors recover investment losses for over twenty years. We represent clients nationwide. Consultation is free.

    Rex Securities Law
    561 391 1900

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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