Realty Finance Trust, a publicly registered non-traded real estate investment trust sponsored by AR Capital, formally terminated its primary offering and deregistered its unsold shares of common stock. The unsold shares were reallocated to its dividend reinvestment plan, which the company will continue to offer.
Immediately prior to the termination of the primary offering, the REIT reallocated 49.7 million unsold shares remaining from the primary offering to the dividend reinvestment plan offering.
The company will now offer a maximum of 66.5 million total shares pursuant to its dividend reinvestment plan. As of January 25, it has sold nearly 1.2 million shares under the DRIP, and there are approximately 65.4 million shares remaining to be sold.
Realty Finance Trust, which went effective in February 2013, originally registered 80 million shares of common stock for its primary offering and 16.8 million shares of common stock for its dividend reinvestment plan.
Shares of common stock were priced at $25.00 per share, and according to the latest Stanger Market Pulse, the company has raised $782.8 million in investor equity since inception. Realty Finance Trust was formed to originate, acquire and manage a diversified portfolio of commercial real estate debt investments secured by properties located both within and outside of the United States.
The board terminated the offering following a series of scandals surrounding AR Capital, its sponsor, and Realty Capital Securities, its dealer manager, which led to the termination of all AR Capital-sponsored investment programs and an agreement by RCS to terminate its business.