lobal Net Lease Inc. (NYSE: GNL) Losses?
Global Net Lease Inc. (NYSE: GNL) Losses?
Soreide Law Group is investigating claims on behalf of investors who were sold Global Net Lease, Inc. (NYSE: GNL) from their broker. GNL – a Triple Net Lease real estate investment trust (REIT) – is concentrated in the acquisition and management of a global portfolio of commercial real estate properties. The firm claims that its real estate assets are occupied by investment grade corporate tenants in the united states, United Kingdom, Netherlands, Finland and Germany.
AR Global manages GNL pursuant to a 35-year management agreement that GNL’s prior leadership arranged. This poses as problem for investors when it comes to global exposure because it depends entirely on AR Global for its expertise in foreign markets. Also, investors should be concerned that the company has a 103% payout ratio – the proportion of earnings paid out as dividends to shareholders. Because of this, GNL faces an increased risk that it won’t be able to sustain the dividends if problems arise in the real estate sector. Consequently, investors are at risk of GNL cutting its dividend payments.
Brokers Selling Unsuitable GNL Investments?
Brokers often sell REIT investments to investors whose objectives are to protect principal and generate income. Sometimes brokers carelessly propose that REITS are a substitute for bonds, but they are not. REITS are equities which contain a substantial increase in risk compared with bonds. Not only that, but REITS are subject to significant adverse effects from changes in the real estate markets. Not surprisingly, brokers sometimes inappropriately recommend investors purchase REITS.
Because of the high commissions charged on REIT investments, many brokers are inclined to push REITS instead of other investments that may be more suitable for investors. Indeed, certain REITS and alternative investments carry commissions that are several times as high as mutual funds, bonds or stocks. Those fees and commissions, at times, are understated or underemphasized to induce investor purchases.
If you experienced losses by investing in GNL, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. 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.