Silver Law Group is investigating brokers and brokerage firms that sold American Finance Trust, Inc. Recently, the American Finance Trust (Stock Ticker: AFIN) begins trading on the Nasdaq Exchange 40% less than what investors initially paid.
American Finance Trust went public and was listed on the Nasdaq Exchange in July 2018. American Finance Trust began trading on the exchange at $15-per-share, which is $10 less per share than what many investors paid when they initially purchased the investment, making it a collective billion-dollar disaster for investors.
American Finance Trust, prior to July 2018, was a non-traded real estate investment trust (REIT) offered by non-traded REIT king Nicholas “Nick” Schorsch. Schorsch was notorious for popularizing non-traded REITs.
American Finance Trust was first sold in 2013 at $25-per-share. When the non-traded REIT was publicly listed on the exchange, it dropped below $14-per-share. While the REIT has increased slightly since that low, there is still a significant loss of value. This loss in value is more egregious in light of the fact that the company published an “estimated per share” net asset value of $23.56 in June 2018 – one month before it went public.
What is a Non-traded REIT?
The concept of a non-traded REIT like American Finance Trust is to raise a significant amount of money from investors to purchase a portfolio of properties and create an income stream for investors from the rents of tenants who lease the properties. Due to their “non-traded” classification, non-traded REITs are illiquid and have to be held by investors for years until the non-traded REIT is sold or listed on an exchange. It took five years for American Finance Trust to be listed on an exchange.
Unfortunately for American Finance Trust and many other non-traded REITs, many of these companies appear to have overpaid for the properties. On top of significant fees and commissions, most non-traded REITs turn out similarly to American Finance Trust. Despite this fact, many brokers and brokerage firms continue to unsuitably recommend and advertise these non-traded REITs as conservative opportunities to generate steady income.
Simply put, illiquidity for five years and then a 40% loss does not sound like a conservative investment for older investors seeking income and preservation of capital.
Contact Our Firm if you Have Invested In American Finance Trust
Silver Law Group has filed numerous claims concerning the unsuitable sale and/or overconcentration of non-traded REITs like American Finance Trust and recovered money on behalf of aggrieved investors. If you have invested in American Finance Trust and/or a non-traded REIT that remains illiquid, we may be able to help you recover your investment.
Contact our firm today to learn how we can try to recover your losses. We work on a contingency fee basis, meaning if we don’t recover money you owe us nothing. Our lawyers have extensive experience in claims against banks, accountants and financial advisors who aid or assist in fraud.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Please contact Scott Silver of the Silver Law Group for a free consultation at firstname.lastname@example.org or toll free at (800) 975-4345.