In an 8-K filed with the SEC on July 1, 2011, Apple REIT Eight announced that it has decreased its distribution rate from 7 percent to 5 percent, or from $0.77 per share to $0.55 per share, based on an $11 share price. This adjustment is anticipated to begin with Apple REIT Eight’s July 15, 2011 distribution payment.
The company explained that "in some markets where Apple Eight owns hotels, recovery has been slower than anticipated and several of the Company’s hotels have not ramped up as quickly as projected. As such, the Company believes that it is prudent to lower the annualized distribution rate until such time as a recovery can be achieved."
This reduction in distribution rate may come as a great surprise to investors who rely on this dividend as part of their income. Unfortunately, further reductions in distribution rates may occur if FINRA and/or the SEC forces a revaluation of the Apple REIT Eight lower than the $11 per share price that it currently maintains.
If you have suffered a financial hardship as a result of this reduction in the Apple REIT Eight distribution rate, please contact one of our attorneys at 312-332-0000. Our attorneys are representing investors who have suffered losses investing in the Apple REITs along with those who are seeking to rescind (get out of) their investment in these products.
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