Investors in Strategic Realty Trust Inc. have been notified that the NAV of the nontraded real estate investment trust has dropped almost 30% from $10/share to $7.11/share. The REIT, previously known as TNP Strategic Realty Trust Inc., has a portfolio that includes over a dozen shopping centers.
Shareholders received a letter telling them that while the REIT has experienced significant property appreciation, different transaction costs have offset gains. This includes transaction costs at $1.54/share, organization and offering expenses at $1.23/share, capital returned to investors via distributions at $1.04/share, and other expenses.
Tony Thompson was the REIT’s head until last year when he was forced to step down as president and co-chief executive officer by the board. Several months ago, he relinquished his director position and stopped a proxy battle against the board. The real estate investment trust consented to purchase his more than 130,000 shares at $8/share.
The latest $7.11 valuation brings attention to Tony Thompson’s claim early last year that the REIT’s estimated NAV had risen to $10.60/share from $10/share. He then hawked the nontraded REIT to brokerage firms. He told them that sales were about to shut but that they still had time to sell the real estate investment trust to investors for $10/share.
2013 was also when Thompson shut down his brokerage firm. He no longer has a securities license. The self-regulatory organization still has a securities complaint pending against him. FINRA is accusing Thomson of defrauding investors who had purchased Thompson National Properties-sponsored high-yield promissory notes.
If you suspect you were the victim of nontraded REIT fraud, contact our real estate investment fraud law firm today. Shepherd Smith Edwards and Kantas, LTD LLP can help you explore your legal options.
Thompson’s former nontraded REIT drops nearly 30%, Investment News, July 21, 2014
TNP Strategic Retail Trust Replaces Advisor and Announces Other Changes, Yahoo Finance, August 12, 2013
More Blog Posts:
California Regulators Probe Inland American Real Estate Trust REIT, Stockbroker Fraud Blog, May 15, 2014
Non-traded REITS Exhibit Unbelievable Resistance to FINRA Disclosure Rules, Institutional Investor Securities Blog, March 19, 2014
FINRA Bars Ex-LPL Broker Over Nontraded REIT Sales, Stockbroker Fraud Blog, December 27, 2013