TIMBER! Wells Timberland REIT Value Plummets

Following in the footsteps of many other non traded real estate investment trusts, on December 14, 2012, the board of directors of Wells Timberland REIT lowered the estimated value to $6.65. This represents a substantial reduction from the original offering price of $10 per share, however, investors will be further shocked to learn that the real value (vs. the company's estimated value) is even less. As we have previously reported (here and here) , since Wells Timberland is a non traded REIT the only market is likely to be one of the privately operated secondary markets where it may trade for a discount of 25-35% from  the company's estimated value. Investors who paid $10 on the offering may find that actual value is less than half of that now.

You may recall that last year, in November 2011, FINRA fined Wells Investment Securities, Inc. $300,000 for using misleading marketing materials in the sale of Wells Timberland REIT, Inc.Trust. Here is a link to FINRA's press release.

Wells Securities was the wholesaler for the public offering of Well Timberland REIT, which invested in timber producing real estate. FINRA found that from May 2007 to September 2009, Wells distributed over 100 advertising and marketing materials that contained misleading, unwarranted or exaggerated statements. In addition the Wells ads did not make it clear that the investment did not yet qualify as a REIT for tax treatment, one of the selling points highlighted to potential investors.

Many investors were sold Wells Timberland and other non exchange traded REITs with the promise of steady and dependable distributions of income and with no warning that liquidity may be an issue. If you made your investment based upon misrepresentations from the selling broker, you may be able to recover all or part of your losses through FINRA arbitration. 

Robert H. Rex, Esq. been helping investors recover investment losses for over twenty years. We represent clients nationwide. Consultation is free.

Rex Securities Law
561 391 1900

 
Trackbacks
  • No trackbacks exist for this post.
Comments
  • No comments exist for this post.
Leave a comment

Comments are closed.