American Finance Trust
On June 29, 2018, American Finance Trust (AFIN) announced that it expects to list its shares on NASDAQ on or about July 19, 2018, under the ticker symbol AFIN.
AFIN’s board of directors (the Board) also approved a phased liquidity plan that is intended to reduce prospective selling pressure immediately following the listing. This phased liquidity plan includes a 2-1 reverse stock split and the reclassification of shares of common stock into Class A common stock, Class B-1 common stock and Class B-2 common stock. The Class B-1 shares will convert into Class A shares 90 days after the listing, and the Class B-2 common stock will convert into Class A shares 180 days after the listing. Shareholders will receive 0.5 shares each of Class B-1, and Class B-2 shares, respectively as a stock distribution on each share of Class A stock. AFIN also reported that the Board approved $200 million to be used for purchases of AFIN stock, as the Board deems prudent, following the listing of shares.
Additionally, AFIN announced that the annual distribution per share will be decreased approximately 15.4% from $1.30 to $1.10 starting July 1, 2018. Additionally, the distribution reinvestment plan (DRIP) was suspended on June 30, 2018, beginning with the July 2, 2018, distribution, which was paid in cash. It is anticipated that the DRIP will resume at some future date. The share repurchase plan was also terminated effective June 30, 2018.
United Development Funding IV, United Development Funding III, LP
On July 3, 2018, United Development Funding IV, and United Development Funding III, LP (collectively the UDF Entities) reported that they had reached a settlement with the SEC concerning all outstanding issues stemming from the SEC investigation that began in April 2014. The settlement included the filing of the SEC’s complaint and a consent judgment. According to a litigation release from the SEC, UDF entities’ employees including Hollis Greenlaw, Benjamin Wissink, Theodore Etter, and Cara Obert, without admitting or denying the SEC’s allegations contained in the complaint, agreed to pay a cumulative $8.2 million in disgorgement, prejudgment interest, and civil penalties. The employees also agreed to be permanently enjoined from violating certain sections of the 33’ and 34’ Acts as well. The UDF Entities noted that none of the individuals named above will be limited from continuing to manage the UDF Entities.
Resource Apartment REIT III, Inc.
On June 27, 2018, Resource Apartment REIT III, Inc. (Resource III) announced that its board of directors approved an estimated NAV per share of $9.05 as of March 31, 2018. Resource III retained Duff & Phelps, LLC to assist in the valuation process, by conducting valuation, research and analysis as necessary. The valuation included the use of cap rates ranging between 5.25% and 5.75%, with a weighted average cap rate of 5.54%.
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Hospitality Investors Trust, Inc.
On July 3, 2018, Hospitality Investors Trust, Inc. (HIT) announced that it redeemed 170,260 shares of its common stock at a purchase price of $7.05 per share, representing approximately 0.43% of its outstanding common stock as of June 29, 2018. HIT most recently estimated NAV per share of $13.87 as of December 31, 2017. HIT’s purchase offer was in response to a third party tender offer at a significant discount to estimated NAV per share.
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