RAIT Financial Trust

According to the Wall Street Journal:

RAIT Financial Trust has filed for chapter 11 bankruptcy and said it plans to sell its assets to a buyer affiliated with Fortress Investment Group LLC for $174.4 million.

The Philadelphia-based real-estate investment trust, which manages commercial real-estate loans and properties, sought protection from creditors Friday in U.S. Bankruptcy Court in Wilmington, Del.

The chapter 11 filing comes less than two weeks after RAIT was told that it had defaulted on bonds due in 2019 and 2024, according to a Securities and Exchange Commission filing. Those bonds have combined principal outstanding of about $120 million, the filing said.

The company’s bankruptcy petition lists both assets and liabilities ranging from $100 million to $500 million.

Hospitality Investors Trust, Inc.

Hospitality Investors Trust, Inc. publicly announcde a suspension of its dividend distribution to investors. According to sources, after the suspension of its dividend in 2017, shares of Hospitality Investors Trust, Inc. plummeted from the initial offering price of $25 to less than $10 per share. By September 2019, the price per share of Hospitality Investors Trust, Inc. allegedly dropped to a staggering $5 per share, representing a near complete loss for investors.

KBS Growth & Income

According to sources, in September 2018 a tender offer to KBS REIT II investors was received for $3.53/share from MacKenzie Realty Capital, Inc. Some investors took advantage of that tender offer as the illiquidity of the non-traded REIT investment left them with little or no choice. Unfortunately, the tender offer NAV valuation as well as the recently approved NAV valuation represent significant declines for many investors, especially those who purchased at the original purchase price of $10.00/share.