Lightstone Real Estate Income Trust Cuts Monthly Distributions by 50%

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Lightstone Real Estate Income Trust Cuts Monthly Distributions by 50%The board of Lightstone Real Estate Income Trust, Inc., manages a variety of real estate properties in the United States.

Recently they approved a 50% decrease in the monthly distributions to investors from 8% annually to just 4%.

Lightstone stated that the purpose of the reduction was the belief that the 8% rate was no sustainable given current operating costs.

Lightstone first sold securities in 2015, continuing to do so until March 2017. At that point, the firm had raised approximately $85 million in investor funds.

Like other REITs, Lightstone was non-traded. Non-traded REITs often pose additional risks for investors that are not obvious and that may not be adequately disclosed.

REITs are favored by certain brokers because of their high upfront commissions, though they also come with additional risk because they are illiquid and are not traded on a national securities exchange.

Anyone who invested with Lightstone REIT may be able to recover some or all of their investment through FINRA arbitration if the investment was made based on unsuitable recommendations. Under FINRA Rules, member firms are responsible for the activity of their brokers and may be liable for misconduct.

Speak to a Securities Lawyer Today

If brokerage firms sold unsuitable, risky private placements to investors, they could potentially be held liable for any resulting financial losses. At Sonn Law Group, we have extensive experience representing investors in securities lawsuits and FINRA arbitration cases. If you sustained large investment losses, you may be eligible to recover monetary damages. For a free consultation, please contact our law office today.


Disclaimer: This article contains opinions and NOT statements of fact in any way whatsoever. The information here is general information that should not be taken as legal advice. NO attorney-client relationship is established between you and our attorneys by reading this article. This article is attorney advertising and should not be used as a substitute for legal advice from a qualified securities lawyer.

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