Cantor Fitzgerald Income Trust Inc., previously known as Rodin Global Property Trust, is currently under increased scrutiny. This investment vehicle, categorized as a non-traded real estate investment trust (REIT), focuses on commercial properties that are typically leased to a single tenant. While this structure may seem appealing for generating consistent rental income, the trust’s recent performance and associated risks have become a point of concern for many investors.
Net Asset Values Sliding
A sign of instability is the recent dip in the trust’s net asset value (NAV). As of late July 2024, share values across different investor classes fell by almost five percent in just one month. This is not an isolated event either. Looking back over the past few years, the trend shows a consistent drop. In 2020, shares were valued in the $23 range, and the original offering price was $25 per share. That value has steadily declined, with current NAVs closer to $20 per share depending on the share class. This continued slide could signal deeper issues in the trust’s underlying assets or tenant reliability.
The Role of Walgreens In Cantor Fitzgerald Income Trust Inc.
One major issue affecting the trust is its connection to Walgreens. A portion of the trust’s rental revenue—about four percent—is tied to Walgreens-leased properties. However, Walgreens is not in the strongest financial position at the moment. Earlier this year, the company made the unexpected decision to suspend its quarterly dividend. This move followed a string of financial troubles, including a downgrade to junk status by credit rating agencies, a plan to close over a thousand stores, and a massive settlement related to opioid litigation.
These challenges raise red flags for anyone invested in the trust. Since a meaningful share of its income is linked to a struggling tenant, the trust’s stability could be impacted. Investors may want to think carefully about what happens when one of a REIT’s largest sources of income faces economic pressure. The risk of reduced or delayed rental income becomes more real in such a scenario.
Risks of Non-Traded REITs
Non-traded REITs like Cantor Fitzgerald Income Trust Inc. carry significant risks, including illiquidity, high upfront fees, and reliance on specific tenants, making them more suitable for experienced investors. Their complexity and lack of transparency can mislead retail investors, especially when brokers—motivated by high commissions—recommend them without proper due diligence. This can lead to serious financial losses and potential accountability for brokers and their firms.
Did You Sustain Losses By Investing In Cantor Fitzgerald Income Trust Inc.?
Did you experience losses because your financial advisor recommended Cantor Fitzgerald Income Trust Inc.? If so, reach out to Soreide Law Group online or at (888) 760-6552 and talk with a securities attorney concerning a potential recovery of your investment losses. Soreide Law Group has recovered losses for investors throughout the United States, works on a contingency fee basis, and advances all costs.