Silver Law Group is investigating claims on behalf of investors who purchased American Finance Trust, Inc. (Nasdaq: AFIN) – a real estate investment trust (REIT) sponsored by AR Global with a focus on the management and acquisition of a service-focused tenant portfolio.
AFIN REIT LOSSES?
According to a report from investment bank, Robert A. Stranger & Co. Inc., AFIN American Finance Trust’s listing has been described as a “belly flop,” and has “eroded approximately $1,000,000,000.00 of the company’s equity value.”
AFIN debuted on July 20, 2018 and closed at $15.00. An estimated 600,000 shares had been traded on its opening day. Approximately fifty percent of American Finance Trust’s common stock is listed on Nasdaq as Class A shares. A substantial drop from the price many brokers sold AFIN to its customers.
Recommended AFIN REIT By A Broker?
Prior to its Nasdaq debut, American Finance Trust was designed as a non-traded REIT. Stockbrokers around the country sold AFIN to retail investors at $25.00 apiece. An estimated $1,600,000,000.00 had been accumulated through the company’s offering prior to its going public.
American Finance Trust reported in its June 2018 Listing Presentation that its estimated-per-share net asset value (NAV) was $23.56 as of December 31, 2017. The AFIN shares closed on August 1, 2018 at $14.95 – over thirty-six percent less than the estimated NAV.
Many illiquid REITs trade at discounts to net asset value, dramatic drops in price can shock investors – the shares are thirty-six percent less than American Finance Trust’s independent board previously valued them. Despite the dismal performance, AFIN chief executive officer, Michael Weil, seemed to somehow suggest as recently as July 19, 2018 that the listing was geared to deliver shareholders optimal results.
If you have invested in AFIN, contact Silver Law Group at (800) 975-4345 for a free consultation. Our firm has recovered millions of dollars for investors who have suffered losses due to broker and brokerage firm misconduct. We represent clients on a contingency fee basis and advance all costs.