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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
My company:
Rex Securities Law
My blog:
Rex Investment Loss Recovery Blog
  • Major Nontraded REITs Have Not Fared Well- Values Down Sharply 1 comment
    Aug 17, 2012 1:31 PM

    According to a study published in the Investment News analyzing the share value of the eight largest nontraded REITs, these alternative investments have not fared well. According to the study these eight raised over $30 billion, which is now worth less than $20 billion.

    Unfortunately retirees, relying on a dependable income stream are some of the hardest hit. Offering share prices were generally $10 for these investments. Here is the "estimated value" as reported by each company:

    Retail Properties of America $3.20
    Inland American REIT $7.22
    Behringer Harvard REIT $4.64
    Wells REIT II $7.47
    KBS REIT I $5.16
    CNL Lifestyle Properties $7.31
    Dividend Capital REIT $6.69
    Hines REIT $7.78

    As implied in their name, nontraded REITs do not trade on any conventional exchange, therefore if liquidity is needed, say for health or living expenses, the only option is a private secondary market. As we have previously reported, these secondary markets discount the company "estimated value" by 25% or more upon sale.

    Many investors were convinced to purchase nontraded REITs with promises of dependable income streams, steady value and the ability to sell. Many REITs have ceased distributions and cancelled redemption programs leaving investors with no cash flow and no ability to liquidate.

    If you have questions about your REIT investment or other stock market losses, please do not hesitate to contact us. We have been helping investors for over twenty years.
    Free consultation.
    Nationwide representation.

    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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  • mark24609
    , contributor
    Comments (2) | Send Message
     
    So much for Ray Lucia - good info thanks
    27 Sep 2012, 08:58 PM Reply Like
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