InPoint Commercial REIT Tells Stockholders to Reject Third Party’s Mini-Tender Offer
The board of directors of InPoint Commercial Real Estate Income Inc. – a commercial mortgage non-traded real estate investment trust – recommended that stockholders not accept a mini-tender offer from unaffiliated third party West 4 Capital LP, an unaffiliated third party.
West 4 offered to purchase up to 375,000 shares of the REIT’s Class P common stock at $7.65 per share.
In a letter, the REIT told stockholders that the per share price offered by West 4 is approximately 53.6% lower than InPoint’s Sept. 30, 2024, Class P estimated net asset value of $16.4883.
Shares of the REIT recently sold on LODAS Markets for $10.50 per share.
According to the REIT, the offer represents “an opportunistic attempt by West 4 to purchase the shares and make a large profit, by buying your shares at a deeply discounted price relative to the most recent NAV thereby depriving you of the potential opportunity to realize the full, long-term value of your investment in InPoint.”
The REIT reminded stockholders that they wouldn’t receive future distributions if they accepted the mini-tender offer and although not guaranteed, it currently pays distributions at an annual gross distribution rate of $1.25 per share common share.
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