Cole Office & Industrial REIT II Announces Changes in Distributions, SRP
May 1, 2020
Cole Office & Industrial REIT II announced a reduction in their distributions per share from an annualized rate of $0.63 per share for regular distributions in 2019 to an annualized rate of $0.42 per share based on the monthly rate for April 2020 of $0.035 per share. The REIT paid a special distribution declared in December 2019 and paid in January 2020 of $1.03 per share. The special distribution represented a portion of the proceeds from the sale of 18 industrial properties in April 2019.
From the Cole Office & Industrial REIT II 8-K filing on May 1:
Given the impact of the COVID-19 outbreak, the Board has decided to make a determination as to the amount and timing of distributions on a monthly, instead of a quarterly, basis until such time that the Company has greater visibility into the impact that the COVID-19 outbreak will have on its tenants’ ability to continue to pay rent on their leases on a timely basis or at all, the degree to which federal, state or local governmental authorities grant rent relief or other relief or amnesty programs applicable to its tenants, the Company’s ability to access the capital markets, and on the United States and worldwide financial markets and economy.
On April 20, 2020, the Board authorized a distribution for the month of April 2020 of $0.035 per share of the Company’s Class A and Class T common stock, less the per share distribution and stockholder servicing fees that are payable with respect to shares of Class T common stock (as such fees are calculated on a daily basis). The distributions for each class of common stock are payable to stockholders of record as of the close of business on April 30, 2020 and will be paid on May 1, 2020. These distributions will be paid in cash or reinvested in shares of the Company’s common stock for stockholders participating in the Company’s distribution reinvestment plan.
Amended Share Redemption Program
On April 29, 2020, the Board approved and adopted an Amended and Restated Share Redemption Program (the “Amended Share Redemption Program”). The Amended Share Redemption Program is effective as of June 1, 2020.
The Amended Share Redemption Program amends and restates the Company’s Share Redemption Program (the “Program”) and, among other changes, replaces the requirement for advance notice of any modification, suspension or termination of the Program with a provision that the Board may amend the terms of, suspend or terminate the Amended Share Redemption Program in its sole discretion if it believes that such action is in the best interest of the Company and its stockholders, and that any material modifications or suspension of the Amended Share Redemption Program will be disclosed to stockholders as promptly as practicable in the Company’s reports filed with the SEC and via its website. The Amended Share Redemption Program also clarifies the types of stockholders whose share redemption requests are eligible to qualify for the special treatment that may be afforded in event of the death of a stockholder, as well as the process for such redemptions, and extends the time during which notice of any stockholder death must be given in connection with any such redemption requests, from 270 days to 12 months.
The foregoing summary of the amendments in the Amended Share Redemption Program is qualified in its entirety by reference to the full text of the Amended and Restated Share Redemption Program, which is filed as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein. Except as set forth above, the Amended Share Redemption Program did not materially amend the terms of the Company’s prior share redemption program.
Source: SECGo Back
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