Hartman vREIT XXXI Releases “Going Concern” Warning

Posted on December 12th, 2022 at 2:51 PM
Hartman vREIT XXXI Releases “Going Concern” Warning

From the Desk of Jim Eccleston at Eccleston Law.

Hartman vREIT XXXI, a non-traded real estate investment trust, has announced its management’s “substantial doubt about the company’s ability to continue as a going concern”, according to its most recent quarterly report filed with the Securities and Exchange Commission (SEC).

The investment trust has two revolving credit loans worth $55 million as well as a $2.41 million term loan, both of which mature in March 2023. Hartman’s management has determined that there is a substantial doubt about the company’s ability to continue as a going concern primarily due to uncertainty regarding the loan maturities, according to the filing. However, the company noted in the filing that management believes it will be successful in extending the maturity date or renewing the loans for one year or longer.

Hartman vREIT XXXI reported a year-to-date net loss of approximately $1.4 million and bank overdrafts of $407,000 at the close of Q3. Hartman vREIT XXXI typically invests in “value-oriented” commercial properties, such as office, retail, industrial and warehouse properties located primarily in Texas.

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

Tags: eccleston, eccleston law, advisors, law, xxxi

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