Clients Increase Their Demands to Cash Out of REITs Amidst Potential Recession

Posted on February 2nd, 2023 at 1:50 PM
Clients Increase Their Demands to Cash Out of REITs Amidst Potential Recession

From the Desk of Jim Eccleston at Eccleston Law.

Investors collectively have rushed to cash out of some non-traded real estate investment trusts (REITs) during the fourth quarter, which has boosted the demand to redeem shares of net asset value REITs by $1 billion, according to investment bank Robert A. Stanger & Co.

Furthermore, KKR & Co., another private equity firm that recently entered the REIT industry, announced that investors’ demands to redeem shares surpassed internal restrictions, which has prompted KKR to refuse some investors’ requests to initiate a redemption. KKR Real Estate Select Trust announced within the last month that it had received repurchase requests of $128 million, or 8.1% of the fund’s aggregate NAV, according to a filing with the Securities and Exchange Commission (SEC).

Stanger estimated that non-traded REIT investors redeemed $4.7 billion in shares over the last three months of 2022, compared to only $3.7 billion during Q3. Another concern regarding non-traded REITs is that redemptions easily outpaced sales during the last quarter. Stranger predicts that the industry should be prepared for more investor redemptions in 2023.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

Return to Archive

TESTIMONIALS

Previous
Next

If you are being bothered by the Regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

February 11, 2025
UnitedHealth Group Agrees to $69 Million Settlement in ERISA Class Action Lawsuit

UnitedHealth Group has agreed to pay $69 million to resolve a class action lawsuit alleging violations of its fiduciary duties under the Employee Retirement Income Security Act of 1974 (ERISA).

February 10, 2025
Former Merrill Lynch Advisor Sanctioned by FINRA for Unauthorized Trades

FINRA has fined Anthony J. Seifert, a former Merrill Lynch advisor based in Mount Pleasant, South Carolina, $5,000 and suspended him for 20 days.

February 7, 2025
Court Finds American Airlines Breached Fiduciary Duty in 401(k) ESG Case

A federal court ruling against American Airlines has brought attention to the role of environmental, social, and governance (ESG) factors in managing retirement plans.