- Report: #976283
Complaint Review: Apple Reit 6 - Richmond Virginia
Reported By:
Dee W -
Manchester, New Jersey, United States of America
Submitted:
Updated:
-
Author Confirmed
Why?
Apple Reit 6
814 East Main St. Richmond, 23219 Virginia, United States of America
Phone:
804-344-8121
Web:
applereitsix.com
Categories:
Business Rating:
(0)
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Apple Reit 6 Pending Sale/Merger with Blackstone, Richmond, Virginia
Investors Beware!! In my opinion, the pending sale of Apple Reit Six to Blackstone is not in your best interests. If you have shares in apple six, as I do, beware of the sale. What they are offering is a fire sale. Investors who want to get their money out, do not look at the price. This was an illiquid investment that cost $11.00 per share. It has paid a handsome dividend 7.2-8.2% since its inception. Other Apple Reits have sold for much more. The last Apple 5 was over $14.00. The terms of this sale is $11.10 per share OF which you will only be paid $9.20 cash and be given another (brand new, formed just for this sale) illiquid
stock valued at $1.90 that will pay a 7% dividend. That's .2% less than you receive now. On top of that, they are suspending all dividends till the sale is over, possibly 3-4 months. So if I read this right, Glade Knight, (who by the way, will receive a nice real estate commission on this sale, as he is the realtor), is offering me $11.10 and forcing me to take another unknown illiquid stock while holding back my dividends for at least 3 months. Plus I'll have to keep my IRA Roth account open and pay $35.00 to administer it to David Lerner Assoc. Am I crazy to vote yes for this?
For example: Say I have 20,000 shares of Apple Six. It's value at $11.00 is $220,000 of which I receive 7.2% or $15,840.00 a year or $1320.00 a month. Its sold. I get to pay taxes on $222,000.00 but only have $184,000.00 in cash and another illiquid stock that's supposed to be worth $38,000.00 that will pay me a dividend of $2660.00 a year or $221.66 a month. Meanwhile I lost 3 months worth of dividends totaling $3960.00. So this good deal is that I lose $3960.00 in dividends (IF it closes in 3 months, more if longer) and you say I make a profit of $2,000.00 on the sale ($11.10/$11.00) and pay taxes on the whole gain.
Thanks, I think I'll pass and keep my dividends coming. All who own Apple Six, think twice before saying yes on your proxy to this fire sale.
stock valued at $1.90 that will pay a 7% dividend. That's .2% less than you receive now. On top of that, they are suspending all dividends till the sale is over, possibly 3-4 months. So if I read this right, Glade Knight, (who by the way, will receive a nice real estate commission on this sale, as he is the realtor), is offering me $11.10 and forcing me to take another unknown illiquid stock while holding back my dividends for at least 3 months. Plus I'll have to keep my IRA Roth account open and pay $35.00 to administer it to David Lerner Assoc. Am I crazy to vote yes for this?
For example: Say I have 20,000 shares of Apple Six. It's value at $11.00 is $220,000 of which I receive 7.2% or $15,840.00 a year or $1320.00 a month. Its sold. I get to pay taxes on $222,000.00 but only have $184,000.00 in cash and another illiquid stock that's supposed to be worth $38,000.00 that will pay me a dividend of $2660.00 a year or $221.66 a month. Meanwhile I lost 3 months worth of dividends totaling $3960.00. So this good deal is that I lose $3960.00 in dividends (IF it closes in 3 months, more if longer) and you say I make a profit of $2,000.00 on the sale ($11.10/$11.00) and pay taxes on the whole gain.
Thanks, I think I'll pass and keep my dividends coming. All who own Apple Six, think twice before saying yes on your proxy to this fire sale.
