Securities Lawyers Blog
Previously, the securities lawyers of Gana Weinstein LLP reported on the decline in value of Healthcare Trust, Inc. a non-traded real estate investment trust (Non-Traded REIT). However, recent news reveals the health of Healthcare Trust may be in further decline. A tender offer on Healthcare Trust shares was recently made at only $12.11 per share – a significant loss on the original purchase price of $25.00. In more bad news for investors, the company lowered its annual distribution rate from $1.45 to $0.85 per share or a cut of over 40%. Had the company continued to pay the higher dividends those payments would have exceeded the cash flows from operations.
According to the firm’s website, Healthcare Trust is an investment trust which seeks to acquire a diversified portfolio of real estate properties focusing primarily on healthcare-related assets including medical office buildings, seniors housing, and other healthcare-related facilities.
Our firm handles where brokers recommend investments in direct participation products (DPPs), private placements, Non-Traded REITs, and other alternative investments. These products are almost always unsuitable for middle class investors. In addition, the brokers who sell them are paid additional commission in order to hype inferior quality investments providing perverse incentives for brokers to sell high risk and low reward investments.