Rich Uncles Suspends DRIP Following Bidder Interest
The board of Rich Uncles Real Estate Investment Trust I, a publicly registered non-traded REIT, has suspended the company’s dividend reinvestment plan after receiving interest from bidders during its strategic review process that started earlier this year.
The board of Rich Uncles Real Estate Investment Trust I, a publicly registered non-traded REIT, has suspended the company’s dividend reinvestment plan after receiving interest from bidders during its strategic review process that began earlier this year.
In January, the board hired Cushman & Wakefield as its real estate financial advisor to evaluate strategic alternatives which include marketing the REIT’s entire real estate portfolio for sale, merger or other transaction structure.
Due to the DRIP suspension, all dividends for the first quarter of 2019 and after will be paid in cash. The suspension will remain in place until the board provides its final recommendation to shareholders relating to the strategic review process. A portfolio sale or other transaction would require shareholder approval.
Additionally, Rich Uncles REIT is seeking up to $3 million in bridge financing on four unencumbered assets to be used for working capital purposes. Until the financing is in place, the company has accepted a $200,000 short-term loan from the its chairman, Raymond Wirta.
The company also disclosed that it has received a deferral of 2019 year-to-date asset management and property management fees owed to its advisor, BrixInvest LLC. The fees total $302,471 and will be paid once the bridge financing is complete.
Rich Uncles REIT I invests primarily in single-tenant corporate properties which are leased to creditworthy tenants under long-term net leases. As of December 31, 2018, the company had raised approximately $91.2 million in investor equity and oversees a $147.5 million portfolio of 20 properties. The REIT reported a $10.57 net asset value per share as of December 31, 2018. Shares were originally sold for $10.00 each.
