Inland REIT Investigation

investor rights lawyersInland American Real Estate Trust Sales Practices by Certain Investment Professionals Investigated by Securities Lawyers

Inland American Real Estate Trust, Inc. is a real estate investment trust (“REIT”) that manages a portfolio of commercial real estate, primarily in the areas of lodging, multi-tenant retail, and student housing.

The Peiffer Rosca Wolf securities lawyers are investigating the sales practices of certain licensed investment professionals who may have made unsuitable Inland REIT investment recommendations to their customers.  While there are no allegations of misconduct as to Inland American REIT, the Inland American REIT investments were not suitable to all investors. Rather, such investments may have been suitable only to investors who had a certain risk profile and the ability to bear substantial investment losses.

Inland American REIT Background

In February 2015, according to a company press release, Inland American spun-off a large portion of its portfolio, Xenia Hotels and Resorts. Just after that spin-off, the company released a video on its website explaining that the board cut the distribution rate to 13 cents per year on an annualized basis. In the same video, the company also noted a drop in the value of its non-core portfolio and noted that Inland American Real Estate Trust Inc.’s current share value is estimated at $4.00 per share. This REIT is not currently traded on a national exchange such as the New York Stock Exchange. The video added that the board also lost two board members to retirement.

Industry observers are carefully watching Inland American Real Estate Trust to determine the effects of the sell-off of Xenia Hotels and Resorts. This change in the REIT could have important consequences for investors. In the REIT’s annual report for 2014, which was filed with the Securities and Exchange Commission (“SEC”) in March 2015, the company noted that there are risks and uncertainties related to a variety of factors, including the company’s investments in equity and debt securities and other investments in companies the company does not control, including Xenia Hotels & Resorts, Inc. The full report, as well as many of the company’s other filings, are available on the SEC’s EDGAR website.

Was Inland American REIT suitable for investors?

REITs can be risky investments and may only be suitable for high net worth investors with high risk tolerance. Each investor’s portfolio is different and some investors may be able to tolerate the higher level of risk that often goes with real estate investment trusts. However, REITs are often sold by brokers who earn commissions that are typically much higher than commissions that they would earn for selling readily-traded stocks, generally speaking. This can sometimes create a conflict of interest for some unscrupulous brokers who could be inclined to recommend REITs to their customers for the higher commissions, even when those REITs are otherwise unsuitable for investors.

What can Inland REIT investors do?

The Peiffer Rosca Wolf securities lawyers have been investigating the sales practices of certain brokers who sold Inland American REIT and other similar types of REITs.  Investors holding shares in this REIT may have different legal options depending on their individual circumstances.

Together, the firm’s attorneys have represented hundreds of investors who have purchased shares in REITs, private placements, and other alternative investments in a wide variety of cases against brokers, companies, and other entities. Each investor’s situation is different. The lawyers at Peiffer Rosca Wolf have decades of experience in evaluating the portfolios of individual investors who have purchased REITs and other investments.

Investors who believe they have lost money in a REIT may contact the securities lawyers Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1180 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


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