Corporate & Securities Law

Inland American REIT Resets Share Value

By Mark Maddox

Inland American Real Estate Trust has reset the value of its common shares to $8.03. For investors, it isn?t good news; the price is down from the $10 that the shares sold for when the non-traded REIT was first launched in 2005.

Inland announced the reset on Sept. 21 in an 8-K filing with the Securities and Exchange Commission (SEC). Inland also stated in the filing that it ?gives no assurance that a stockholder would be able to resell his or her shares at the new estimated value.?

?We believe the current downturn in the economy has depressed the value of our assets and hence the estimated value of our shares,? Inland said. ?The value of our shares will likely change over time and will be influenced by changes to the value of our individual assets as well as changes and developments in the real estate and capital markets.?

Other non-traded have followed Inland lead in resetting their values. Among them: Behringer Harvard REIT I, which reset its shares to $4.25 earlier this summer, and KBS REIT, which reset its value to $7.17 in late 2009.

Maddox Hargett & Caruso is investigating sales of non-traded REITs on behalf of investors. If you believe your broker/dealer or financial adviser misrepresented the facts concerning non-traded REITs, please contact us.

Full post as published by Representing Investors on October 25, 2010 (boomark / email).