- September 29, 2019
- Lightstone Real Estate Income Trust Inc
The Wolper Law Firm is currently investigating claims on behalf of investors who purchased shares of Lightstone Real Estate Income Trust, Inc., a non-traded real estate investment trust (“Non-Traded REIT”).
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.
Non-Traded REITs are securities that do not trade on a public securities exchange. For this reason, Non-Traded REITs can be illiquid, meaning investors may be unable to sell their investments on demand. The underlying collateral of the REITs consists of income producing residential or commercial real estate. Typically, the commissions generated on Non-Traded REITs are higher than industry norm (approx. 7%) and the investments themselves may be subject to extreme volatility due to associated risk factors. Non-Traded REITs are only suitable for investors with a long-term investment horizon who are willing to accept higher levels of risk in their investments.
Lightsone Real Estate Income Trust, Inc., which was formed in 2014, is the latest Non-Traded REIT to experience financial difficulties and publicly announce a reduction in its dividend distribution to investors. This is often a precursor to a dividend suspension. According to public records, the board of directors of Lightsone Real Estate Income Trust, Inc. recently approved decreasing the monthly distribution by 50%, from 8% to 4%. The board of directors cited a lack of liquidity and cash flow as reasons for the dividend reduction.
If you are an investor in Lightsone Real Estate Income Trust, Inc., and are looking for an attorney to evaluate your legal options, contact the securities litigation and arbitration attorneys at the Wolper Law Firm, P.A. The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org.