oreide Law Group is investigating claims by investors who have contacted us regarding losses in Lightstone Real Estate Income Trust, Inc., a non-traded real estate investment trust (non-traded REIT). According to the SEC, on March 25, 2020, the Lightstone’s Board of Directors determined to suspend regular monthly distributions. Also stated on the SEC website, “The Company cannot assure that any future distributions will be made or that it will maintain any particular level of distributions that it has previously established or may establish.”
On Lightstone’s website, they state that since 2005, Lightstone has “offered investors the opportunity to invest in a diversified portfolio of real estate through its various public non-traded REIT offerings.”
Lightstone’s Non-Traded REIT offerings, include:
- Lightstone Value Plus REIT, Inc. (closed to new investors)
- Lightstone Value Plus REIT II, Inc. (closed to new investors)
- Lightstone Value Plus REIT III, Inc.
- Lightstone Real Estate Income Trust, Inc.
Investors often purchase real estate investment trusts (REITs) because of their dividends. But as the COVID-19 pandemic worsens and tenants are strapped for cash, there is a lack of liquidity and cash flow. All financial advisors and brokers have an obligation to explain REITs to their clients due to the complex and high-risk nature of these products. Non-Traded REITs are securities that do not trade on a public securities exchange. They can be illiquid, and unable to sell when the investor may need the cash. The commissions on non-traded REITs may be higher than usual and very volatile. Due to their complexity, non-traded REITs are often more suited to the experienced and sophisticated investors. Many brokers may have misrepresented the risks of Lightstone Real Estate Income Trust to their clients, and now the dividends have stopped.
If you’ve experienced losses due to the actions or recommendations of your broker regarding Lightstone Real Estate Income Trust, contact Soreide Law Group and speak to a lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee and represents our clients nationwide before FINRA.