Report says REIT changes proposed by AR Global would remove investor protections

June 1, 2016

Robert A. Stanger & Co. critical of proxies firm has sent out in preparation for possible consolidations

May 31, 2016 @ 12:45 pm | By Bruce Kelly | Investment News

Nicholas Schorsch
Nicholas Schorsch

Changes proposed at seven real estate investment trusts controlled by Nicholas Schorsch’s AR Global present a “clear and present danger” to their investors by eliminating investor protections, according to a report issued Tuesday by Robert A. Stanger & Co. Inc., an investment bank that focuses on nontraded REITs.

Serious changes are afoot at AR Global. In April, InvestmentNews reported that AR Global was attempting to consolidate more than a half-dozen real estate investment trusts with almost $10.5 billion in assets. Weeks later, a former independent director of two nontraded real estate investment trusts controlled by AR Global claimed “a manifest conflict of interest” in the potential merger of one of those REITs into a related company.

The flurry of mergers, if successful, would put more assets under control of two REITs, American Finance Trust and Global Net Lease, which have unusual, difficult-to-break 20-year advisory contracts with AR Global. AR Global does not have the 20-year advisory agreements with the other REITs it manages.

Article Located Here

Go Back
Second Annual Blue Vault Broker Dealer Educational Summit 2016
Broker Dealer Educational Summit 2016
April 14, 2016

The Blue Vault Summit could not have been more perfectly timed. This gathering of the Broker Dealer and Sponsor communities provided insightful and open discussion from several vantage points. These conversations are paramount, especially in a time of significant regulatory change.