Risks & suitability

Investments in Lightstone Value Plus Real Estate Investment Trust are subject to substantial risks.

These risks include:

  • No public market currently exists for our shares of common stock, no public market for those shares may ever exist and our shares are illiquid;
  • There are substantial conflicts between the interests of our investors, our interests and the interests of our advisor, sponsor and our respective affiliates regarding affiliate compensation, investment opportunities and management resources because David Lichtenstein, the Chairman of our board of directors and our Chief Executive Officer, is the sole owner of our sponsor, our advisor and our property manager. We may purchase properties from the advisor or its affiliates; the sponsor and advisor may compete with us and acquire properties that suit our investment objectives; we have no employees that do not also work for our sponsor or advisor and the advisor is not obligated to devote any fixed, minimum amount of time or effort to management of our operations;
  • We may maintain a level of leverage as high as 300% of our net assets, as permitted under our charter;
  • There are limitations on ownership and transferability of our shares that prohibit five or fewer individuals from beneficially owning more than 50% of our outstanding shares during the last half of each taxable year and, subject to exceptions, restrict any person from beneficially owning more than 9.8% in value of our aggregate outstanding shares or more than 9.8% in number of shares or value of our common stock;
  • Our investment policies and strategies may be changed without shareholder consent;
  • We are obligated to pay substantial fees to our advisor and its affiliates, including fees payable upon the sale of properties, and our incentive advisor fee structure may result in our advisor recommending riskier or more speculative investments;
  • We may make distributions that include a return of principal and may need to borrow to make these distributions;
  • These are speculative securities and this investment involves a high degree of risk. You should purchase these securities only if you can afford a complete loss of your investment. Refer to the applicable prospectus for a more detailed discussion of risks and suitable standards in your state. This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein. The offering is made only by the prospectus.