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Item 1A. Risk Factors
There are no material changes to following risk factors amend and supplement the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2023.
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Our DRP has been suspended and thus is no longer a source of capital.
In connection with the boards review of strategic alternatives, we suspended the DRP. While we expect to continue paying distributions during the pendency of the review of strategic alternatives, because the DRP was suspended, it will no longer be a source of capital. During the nine months ended September 30, 2024, distributions reinvested through the DRP generated capital of approximately $5.0 million.
Our SRP has been suspended and may be terminated in our Boards sole discretion.
In connection with the boards review of strategic alternatives, we suspended the SRP. During the suspension, we will not repurchase shares under the SRP. There is no assurance of when, or if, the suspension will be lifted if the review of strategic alternatives does not result in a transaction or event that results in a liquidity event for stockholders.
The outcome of the review of strategic alternatives is uncertain.
On September 18, 2024, we announced that our board had decided to begin a review of strategic alternatives, including sale of the Company. There is no assurance as to how long the review will take or the outcome of the process, including whether a transaction or event occurs at a price equal to or greater than our estimated per share NAV. The outcome of any potential transaction or event will depend on several factors many of which will be beyond our control. The process of reviewing strategic alternatives may be time consuming, distracting and disruptive to our business operations. In addition, given that reviewing strategic alternatives may result in a sale, merger or other strategic transaction, any perceived uncertainty regarding our future operations or needs may limit the ability of our business manager or real estate manager to retain or hire qualified personnel and may impact our ability to attract or retain tenants at our properties. Our board may conclude that it is in our best interest to continue with our existing business plan and not seek a transaction or event that would provide stockholders with liquidity.