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Did You Suffer Investment Losses in DigitalBridge REIT?
Our Trusted Real Estate Investment Trust Loss Lawyers May Be Able to Help
Real estate investment trusts (REITs) can be very risky and they may not be suitable for many retail investors and retirees. Unfortunately, this does not always stop brokers from unsuitably recommending them to customers. Shepherd Smith Edwards and Kantas’ (investorlawyers.com) Real Estate Investment Trust Loss Lawyers represent investors in recouping REIT losses caused by broker fraud or misconduct. Please contact us today to request your free, no-obligation case assessment so that we can help you determine whether you should sue your broker-dealer for damages.
Analyst Warned Investors About DigitalBridge REIT
According to analyst Dane Bowler in a 2021 Seeking Alpha article, investors of DigitalBridge (DBRG) have had reason to worry. Formerly the mortgage real estate investment trust (REIT) NorthStar Realty Finance then became an equity REIT. it did well for a while until, notes Bowler, “management got greedy.” In the article, he cites the 2014 decision by NorthStar Realty Finance to spin off its manager into another company, NorthStar Asset Management, and how this allowed REIT executive David Hamamoto to earn $74M. There were also other spin-offs that ensued, including the NorthStar Realty Europe REIT.
Another merger was announced in 2016 to bring together NorthStar Asset Management and NorthStar Financial with Colony Capital to become Colony NorthStar. Following yet another joint venture, a rebranding to DigitalBridge occurred in 2021. Bowler notes that with every transition, management has earned significant fees while shareholders have not done as well.
In a 2022 4th quarter report by Meridian Funds, DigitalBridge was noted as, at one point, having its shares losing 63.26% of its value over the prior 52 weeks. The REIT’s woes were in part blamed on management deviating from its “traditionally strong property investment business” when it went into an “ill-fitting merger” that led to debt.
Why Consult With Our Seasoned Real Estate Investment Trust Loss Lawyers?
Shepherd Smith Edwards and Kantas represent real estate investment trust investors that have suffered losses because their broker allegedly unsuitably recommended these alternative investments, made misrepresentations and omissions about the risks, or concentrated these clients’ funds in too many of them. Our financial product failure law firm has been fighting for investors for over 30 years.
We have an in-depth understanding of REITs and why they can cause such serious investor losses. Because many of them are illiquid, they can be hard for an investor to research beforehand and, also, sell later on. Meanwhile, publicly-traded REITs bring with them the potential risk of losing their value as interest rates go up.
Many of our trusted securities lawyers are former brokers that witnessed firsthand the ways in which certain financial advisors engaged in broker misconduct or negligence when marketing and selling these investments to customers. Over the years, we have helped thousands of investors collectively recover many millions of dollars from brokerage firms that failed to detect or stop different kinds of stockbroker fraud from happening.
How To Speak With One of Our Experienced Real Estate Investment Trust Loss Lawyers
Call (800) 259-9010 today or contact us online.