Resource Real Estate Opportunity REIT Inc., a publicly registered non-traded real estate investment trust, has recommended that its shareholders reject an unsolicited tender offer by Comrit Investments 1 L.P. to purchase up to 654,664 shares of common stock for $6.11 each. The offer constitutes approximately 0.94 percent of the REIT’s outstanding common stock.
The board of Resource Real Estate Opportunity REIT recently approved a net asset value per share of $11.10, as of December 31, 2019, and shares originally sold for $10.00 each. Comrit’s offer price is roughly 45 percent less than the estimated value.
“Please be aware that Comrit has a history of making tender offers for non-traded REIT shares at prices that are significantly below their disclosed estimated value and we believe the offer represents an opportunistic attempt by Comrit to make a profit off your shares at a time of significant economic uncertainty by purchasing them at a deeply discounted price,” Resource Real Estate Opportunity REIT said in a letter to shareholders.
Last month, the REIT suspended its share redemption program except for redemptions due to a stockholder’s death, qualifying disability, or confinement to a long-term care facility, citing the coronavirus pandemic as the reason. The company also suspended regular monthly distributions, indicating the suspension would be temporary.
Resource Real Estate Opportunity REIT launched its initial offering in June 2010 and raised more than $633 million in investor equity before its closing in December 2013. The company oversees a $960 million portfolio comprised of 29 multifamily properties and continues to raise capital through its distribution reinvestment plan.
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