Moody National REIT II Inc., a publicly registered non-traded real estate investment trust, is implementing a number of changes to its public offering and the compensation paid to its advisor, Moody National Advisor II LLC. The company said that the changes are in response to current market conditions.
The REIT is reducing selling commission on its Class A shares from 7 percent of the sales price to 6 percent. The advisor intends to pay all selling commissions, dealer manager fees and stockholder servicing fees for Class A, Class D, Class I and Class T shares. The acquisition fee paid to the advisor will be increased to recoup some of these payments.
In connection with the offering changes, the company suspended sales of shares of common stock effective December 26, 2017, and suspended the distribution reinvestment plan and share repurchase plan, both effective January 1, 2018.
The company plans to resume share sales and reinstate the SRP and the DRP next month.
Shareholders receiving distributions in the form of shares under the DRP will receive a cash distribution for any month in which the DRP has not been reinstated. Once the DRP is reinstated, distributions will return to the form previously selected.