Lightstone Real Estate Income Trust, Inc. Investment Losses
Posted on Monday, September 23rd, 2019 at 8:47 pm
Erez Law is currently investigating brokers across the country who recommended their clients invest in Lightstone Real Estate Income Trust (REIT).
Lightstone Real Estate Income Trust was offered by Lightstone Capital Markets, a highly-regarded and diversified real estate company in New York City that was established in 1988. Lightstone Capital Markets is one of the largest privately-held real estate companies in the country, with holdings in 21 states and a total portfolio of more than $2 billion that comprises of more than 11,000 residential units, 3,200 hotel keys, and more than 12,000 land lots across the country.
Established in 2005 in Maryland, Lightstone Real Estate Income Trust has offered investors the opportunity to invest in a diversified portfolio of real estate through its various public non-traded REIT offerings.
In March 2017, Lightstone Real Estate Income Trust terminated its offering, after it raised nearly $86 million from investors since its inception.
According to public records, the board of Lightstone Real Estate Income Trust recently approved decreasing monthly distributions in half, from 8% down to just 4% annually. Lightstone Real Estate Income Trust’s board cited the necessity for this decrease was that the 8% annual return was no longer sustainable based upon funds available from operations, as well as the liquidity and operating costs concerns.
A REIT is a company, modeled after mutual funds, that owns or finances income-producing real estate and provide investors of all types regular income streams, diversification and long-term capital appreciation. Unlike other real estate investments, REITs are often entirely illiquid. Non-traded REITs hold additional risks for investors because they often feature limited redemption programs, high fees and commissions, and internal conflicts of interest. Unlike stocks on the New York Stock Exchange, REITs are not publicly traded and cannot be sold through an exchange, only through secondary market auctions. Non-traded REITs hold additional risks for investors because they often feature limited redemption programs, high fees and commissions, and internal conflicts of interest.
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.
Lightstone Real Estate Income Trust sold to the public, including unsophisticated retail investors who bought shares at the advice of their investment brokers.
Many financial advisors at brokerage firms across the country did not disclose the significant risks involved with investments in Lightstone Real Estate Income Trust.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, brokerage firms across the country may be liable for investment or other losses suffered by its customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.