The Parking REIT Delays NAV Update Citing Covid-19

The Parking REIT Delays NAV Update Citing Covid-19, featured by top securities fraud attorneys, The White Law GroupConcerned about investment losses in the Parking REIT?

Did you lose money in the Parking REIT at the recommendation of your financial advisor? If so, the securities attorneys at The White Law Group may be able to help you to recover your losses by filing a FINRA dispute resolution claim against your brokerage firm.

The Parking REIT is a non-traded REIT formed in December 2017 by the merger of MVP REIT and MVP REIT II that invests primarily in parking lots and garages in the United States.

The White Law Group has been investigating the Parking REIT/MVP REIT II since 2016 when it first announced that it would re-evaluate pursuing a listing on the NASDAQ Global Market, and consider other stockholder liquidity options.

The company suspended distributions paid on its Series A and Series 1 Preferred Stock  last April due to economic turmoil caused by the COVID-19 global pandemic. Yet  prior to the Coronavirus,  the company suspended distributions and share repurchases for holders of its common stock in 2018.

According to a Form 8-K filing on December 30, The Parking REIT, Inc., has continued to delay its calculation of an updated NAV.

The company says that due to  “the severe and continuing impact of the global COVID-19 pandemic and related governmental orders and in light of the extreme uncertainty, volatility and lack of liquidity in the market, which make values difficult to discern, the Board is still unable to determine an NAV estimate at this time.”

 The Company cannot provide any assurance as to when the Board will be able to determine an estimated NAV in the future but intends to do so when circumstances permit.The REIT typically calculates its NAV in May each year.

The Trouble with Non-Traded REITs

The trouble with non-traded REITs, like The Parking REIT, is that they are complex and inherently risky products.

Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.

Lack of liquidity is often problematic for many investors.  Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.

Filing a Complaint against your Brokerage Firm

If you have suffered losses investing in The Parking REIT (MVP REIT II),  please contact The White Law Group at 888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois. For more information on the firm, visit www.WhiteSecuritiesLaw.com.