The board of Resource Real Estate Opportunity REIT Inc., a publicly registered non-traded real estate investment trust, has approved a partial suspension of the company’s share redemption program.
According to a filing with the Securities and Exchange Commission, the board will not consider any redemption requests submitted for the first quarter of 2020 except for redemptions in connection with a stockholder’s death or qualifying disability which are not impacted by the suspension.
The company said that while the partial suspension is in effect, all other pending or new requests will not be honored or retained but will be cancelled with the ability to resubmit when and if the share redemption program is fully resumed.
The board said that it will continue to consider the liquidity available to stockholders going forward, balanced with other long-term interests of the stockholders and the company. “It is possible that in the future additional liquidity will be made available by the company through the full resumption of the share redemption program, though we can make no assurances as to whether that will happen, or the timing or terms of any resumption,” the company said in the filing.
Last week, The DI Wire reported that Resource Real Estate Opportunity REIT II, an affiliated non-traded REIT, released a nearly identical announcement on its board’s decision to partially suspend the company’s share redemption program.
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.