Strategic Student & Senior Housing Trust, Inc. investors seek claims that they were sold risky investments from brokers
The Sonn Law Group is currently investigating allegations that brokers recommended investments in Strategic Student & Senior Housing Trust, Inc. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
Strategic Student & Senior Housing Trust, Inc. (“SSSHT”) is a public, non-traded REIT focused on student and senior housing. According to its website, SSSHT intends to “take advantage” of the growing demand for student and senior housing.
SSSHT advertises that they can provide “stability, diversification, income, and potential growth over the long-term.” The REIT raised approximately $93 million from its private offering ending in March 2018. As of March 16, 2020, the company had raised $17 million through its primary public offering. In January 2018, shares of SSSHT sold for $9.25/share. The value in September 2020 was $6.08/share.
As of March 30, 2020, SSSHT announced to its investors that distributions would be suspended, and that it could be years until their properties stabilize. SSSHT reportedly does not anticipate their current portfolio generating enough cash flow to pay stockholder distributions in the near future. Additionally, SSSHT has suspended its primary public offering and share redemption program, citing the COVID-19 pandemic and its impact on the economy.
“There is no way to predict the extent to which COVID-19 will impact our overall financial results,” the company said in a letter to shareholders. “In light of such, we believe it is prudent to retain cash and preserve financial flexibility.”
Non-traded REITs like Strategic Student & Senior Housing Trust are risky for most investors because they are not as liquid and transparent as most other investments. Despite the risks associated with REITs, they are frequently recommended to elderly, retired, and conservative investors because they can generate large commission fees for brokers.
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If you suffered losses investing in Strategic Student & Senior Housing Trust, please call us now at 866-827-3202 or complete our contact form.