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First Capital Real Estate Trust Suspends Drip, Explores Strategic Alternatives

The board of directors of First Capital Real Estate Trust Incorporated, a publicly registered non-traded REIT formerly known as United Realty Trust, approved the suspension of the company’s monthly distributions, effective November 1st, according to a filing with the Securities and Exchange Commission.

The suspension was approved in order to increase its cash reserves, the company said, and it intends to make the October distribution to stockholders no later than November 30th.

First Capital Real Estate Trust’s board also engaged Ladenburg Thalmann Financial Services Inc. as advisor to review strategic alternatives available to the company with the goal of maximizing liquidity and long term shareholder value. The board has not approved any particular transaction at this time.

As reported by The DI Wire last week, the company agreed to purchase eight residential development properties in Northern California comprised of 2,026 single-family residential lots.

First Capital Real Estate, based in New York City and founded in 2012, focuses on stabilized, cash flowing real estate as well as value added and opportunistic assets. The company’s portfolio consists of various assets including land development, multifamily development, a gas station, hotels, medical offices, transitional housing, and business offices. Recent financial and portfolio information relating to the company is currently unavailable as no quarterly filings have been submitted to the SEC since August 2015.

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