Securities Lawyers Blog
The securities lawyers of Gana Weinstein LLP are investigating recommendations by brokerage firms for their clients to invest in RW Holdings NNN REIT Inc., formerly known as Rich Uncles NNN REIT Inc.,- a non-traded real estate investment trust (non-traded REIT). RW Holdings originally sold shares for $10.00. The fund claims to have an estimated net asset value per share of $6.00. However, secondary market trading would likely value this REIT substantially lower in value.
As a background, RW Holdings NNN REIT’s real estate portfolio totals 2.4 million square feet, 45 properties divided into 19 retail properties, 14 office properties, and 12 industrial properties located in 14 states. The portfolio also includes approximate 72.7 percent tenant-in-common interest in an office property in Santa Clara, California.
In May 2020 The REIT said that it was suspended its offering and its plans to declare a revised net asset value per share later that month, as well as a revised distribution rate. RW Holdings expected that both will be lower due to the impact of the COVID-19 pandemic.
In a statement the REIT claimed “Given our inability to collect 100 percent of contractual rents, we are re-evaluating our current distribution rate…,”
More recently, the REIT published the new share valuation showing substantial losses and write downs and reduced its dividend ratio from $0.7 shares per ordinary share to $0.35 shares – a substantial decline.