Payroll problems dog small nontraded REIT
First Capital Real Estate Trust, formerly known as United Realty Capital Trust, has also missed filing financial statements with the SEC for more than a year and recently cut its dividend to investors
Nov 23, 2016 @ 12:42 pm | By Bruce Kelly | Investment News
A small nontraded real estate investment trust that has missed filing financial statements with the Securities and Exchange Commission for more than a year and recently cut its dividend to investors is now facing another hurdle: failing to pay employees on time.
The REIT, First Capital Real Estate Trust Inc., reported in June 2015 that it had $63.2 million in total assets, according to the company’s quarterly report at the time. Since then, it has not issued another financial statement with the SEC, although it could have almost four times as many assets under its roof based on a transaction reported last year.
In an email to employees last Friday, Paschal Ferreira, chief accounting officer of the REIT’s adviser, First Capital Real Estate Investments, discussed changes affecting employees of the REIT’s adviser and then outlined the problems with paying employees promptly.
“With that said, the goal is to fund this past due payroll by Tuesday of next week and we are hopefully back on track going forward,” according to Mr. Ferreira’s email. “I realize this has not been an easy transition period for anyone, and we truly appreciate your continued hard work and dedication throughout this process.”