INLAND AMERICAN REIT Announces Significant Drop in Value and Distributions
Inland American REIT Announces Significant Drop in Value and Distributions
In a recent filing with the Securities and Exchange Commission (SEC), Inland American, a non-traded REIT or Real Estate Investment Trust, announced that the net asset value (NAV) of its shares dropped 42.4%. The NAV dropped from $6.94 in 2013 to $4 currently. Inland American also announced that it was cutting its annual distribution from 50 cents per share to 13 cents per share, a 74% drop.
Part of the reason for the drop was Inland American’s recent spin-off its hotel portfolio, which now trades as a listed REIT, Xenia Hotels & Resorts, Inc. As part of the spin-off, every shareholder received one share of Xenia for every eight shares that the investor held in Inland American.
Inland American initially sold its shares at $10 per share. Inland American was launched back in 2004.
Many financial advisors sold Inland American REIT shares to their customers. To the extent that the advisor misrepresented the risks of these shares to their customers, they could potentially be liable. Also, if the Inland American REIT shares were not suitable for the investor, considering the investor’s risk tolerance, investment objectives, age, net worth, etc., then the advisor might have liability for making unsuitable investment recommendations.
Our attorneys have represented over one thousand investors who have been defrauded by their financial advisor or stockbroker. While we have offices in Denver and the Seattle area, we have previously represented investors throughout the country. If you have lost money with Inland American at the recommendation of your financial advisor and want to hear about ALL legal options, please visit https://www.israelsneuman.com or call us at 720-599-3505.