Apple Real Estate Investment Trust Cos. in Richmond, VA, is evaluating a potential consolidation of four of its five non-listed hotel REITs: Apple REIT Six, Seven, Eight and Nine. A potential consolidation could also include a listing of the stock of the combined enterprise for trading on a national exchange.
As of June 30, the four REITS owned a combined 254 hotels with 30,976 rooms across the country.
The company said it has not made a decision to pursue any particular transaction, and there can be no assurance that the evaluation of a potential consolidation transaction would result in any other strategic alternative.
In May, the Financial Industry Regulatory Authority (FINRA) filed a complaint against David Lerner Associates Inc., related to its sales practices relative to the units of Apple Real Estate Investment Trust other REIT, Apple REIT Ten Inc. David Lerner Associates was the sole distributor (managing dealer) of the Apple companies. While the Apple Cos. is unaffiliated with David Lerner Associates, it does rely upon David Lerner Associates for the administration of its REIT units. Apple Cos has been cooperating with regulatory or governmental inquiries regarding David Lerner Associates.
Apple REIT Cos. is facing class actions suits related to David Lerner Associates' sales of its REIT units. Apple REIT Cos. is contesting the suits.
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