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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>WASHINGTON, DC 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CURRENT REPORT PURSUANT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>TO SECTION 13 OR 15(D) OF THE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES EXCHANGE ACT OF 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Date of report (Date of earliest event reported):
February 20, 2012</B></P>

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    <TD STYLE="width: 100%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 24pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Shopoff Properties Trust, Inc.</TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: center">(Exact Name of Registrant as Specified in Its Charter)</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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    <TD STYLE="width: 100%; padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Maryland</TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; font-size: 10pt; text-align: center">(State or Other Jurisdiction of Incorporation)</TD></TR>
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    <TD STYLE="width: 50%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">333-139042</TD>
    <TD STYLE="width: 50%; border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">20-5882165</TD></TR>
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    <TD STYLE="text-align: center">(Commission File Number)</TD>
    <TD STYLE="text-align: center">(IRS Employer Identification No.)</TD></TR>
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    <TD STYLE="text-align: center">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
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    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">2 Park Plaza Suite 700, Irvine, California</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; font-weight: bold; text-align: center">92614</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center">(Address of Principal Executive Offices)</TD>
    <TD STYLE="text-align: center">(Zip Code)</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(877) 874-7348</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><U>&#9;</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Registrant&rsquo;s Telephone Number, Including
Area Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Not applicable</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><U>&#9;</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Former Name or Former Address, if Changed Since
Last Report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.4in">Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(<I>see </I>General Instruction A.2. below):</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt"><FONT STYLE="font-family: Wingdings 2">&pound;</FONT></TD><TD>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt"><FONT STYLE="font-family: Wingdings 2">&pound;</FONT></TD><TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt"><FONT STYLE="font-family: Wingdings 2">&pound;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 13.5pt"><FONT STYLE="font-family: Wingdings 2">&pound;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD></TR></TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U>TABLE OF CONTENTS</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.3in"><A HREF="#a_001"></A><A HREF="#a_001">Item&nbsp;7.01 Regulated FD Disclosure.</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.3in"><A HREF="#a_002">Item 8.01. Other Events.</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.3in"><A HREF="#a_003">Item 9.01 Financial Statements and Exhibits.</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><A HREF="#a_004">SIGNATURE</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><A HREF="#a_005">EXHIBIT INDEX</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><A HREF="v304317_ex99-1.htm">EX-99.1</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><A NAME="a_001" TITLE="Item 7.01"></A><B>ITEM&nbsp;7.01 REGULATION FD DISCLOSURE</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">A letter to Shopoff Properties Trust Inc.&rsquo;s
(the &ldquo;Company&rdquo;) stockholders regarding its estimated value per share is attached as Exhibit 99.1 to this Current Report
on Form 8-K.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">The information in this Item 7.01 of Form
8-K and the attached Exhibit 99.1 are furnished to the SEC, and shall not be deemed to be &ldquo;filed&rdquo; with the SEC for
any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject
to the liabilities of that section and shall not be deemed to be incorporated by reference into any filing under the Securities
Act of 1933, as amended, or the Securities Act, or the Exchange Act regardless of any general incorporation language in such filing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><A NAME="a_002" TITLE="Item 8.01"></A><B>ITEM&nbsp;8.01 OTHER EVENTS</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B>Estimated Value Per Share</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">On February 20, 2012, the Company&rsquo;s
board of directors approved a basic estimated value per share of the Company&rsquo;s common stock of $6.56 and a fully diluted
estimated value per share of the Company&rsquo;s common stock of $6.24 based on an equal weighted average of (i) the estimated
value of the Company&rsquo;s assets less the estimated value of the Company&rsquo;s liabilities, or adjusted net asset value method,
and (ii) the present value of future expected income of the Company, discounted for risk, or discounted cash flow method, divided
by the actual number of shares outstanding for the basic estimated value per share and anticipated number of shares outstanding
for the fully diluted estimated value per share, all as of December&nbsp;31,&nbsp;2011. There have been no material changes between
December 31, 2011 and the date of this filing to the net values of the Company&rsquo;s assets and liabilities that existed at December&nbsp;31,&nbsp;2011.
The Company is providing this estimated value per share to assist broker dealers that participated in the Company&rsquo;s initial
public offering in meeting their customer account statement reporting obligations under the National Association of Securities
Dealers Conduct Rule&nbsp;2340 as required by the Financial Industry Regulatory Authority (&ldquo;FINRA&rdquo;).</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">The estimated value per share was based
upon the recommendation and valuation by Newport Valuations, Inc. (&ldquo;Newport&rdquo;), an independent third-party firm hired
by the Company to complete said valuation, based on the methodologies and assumptions described further below. With regard to the
valuation of its real estate properties, the Company engaged two firms, CB Richard Ellis, Inc. (&ldquo;CBRE&rdquo;), and Kitty
Siino &amp; Associates, Inc. (&ldquo;Siino&rdquo;), both independent third-party real estate valuation firms, to prepare real estate
valuations for the real estate properties owned by the Company. These real estate valuations by CBRE and Siino were then provided
to Newport with Shopoff Advisors LP (the&nbsp;&ldquo;Advisor&rdquo;), the Company&rsquo;s external advisor, providing Newport with
certain historical and prospective Company financial information. The estimated value per share recommendation and valuation by
Newport was then reviewed by the Advisor, who reviewed both the CBRE and Siino real estate valuations, and the methodologies and
assumptions used in determining Newport&rsquo;s valuation conclusions, and shared with the Company&rsquo;s board of directors its
views regarding the reasonableness of such methodologies and valuation conclusions. Nothing in the CBRE and Siino real estate valuations
caused the board of directors to question the reasonableness of Newport&rsquo;s valuation of the Company&rsquo;s common stock.
After considering all information provided in light of the board of directors&rsquo; extensive knowledge of the Company&rsquo;s
assets, the board of directors unanimously agreed upon the estimated values per share of $6.56 and $6.24, which determination is
ultimately and solely the responsibility of the board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">FINRA rules provide no guidance on the
methodology an issuer must use to determine its estimated value per share. The estimated value per share does not represent the
fair value of the Company&rsquo;s assets less its liabilities according to U.S. generally accepted accounting principles (&ldquo;GAAP&rdquo;),
nor does it represent a liquidation value of the Company&rsquo;s assets and liabilities or the amount at which the Company&rsquo;s
shares of common stock would trade on a national securities exchange.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B><I>Process and Methodology</I></B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">The Company&rsquo;s goal in calculating
an estimated value per share is to arrive at a value that is reasonable and supportable using what the Company, its Advisor, and
Newport deem to be appropriate valuation methodologies and assumptions under then current circumstances in accordance with the
Company&rsquo;s Estimation Valuation Policy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">In arriving at the estimated value per
share, the Advisor discussed with Newport the valuation methodologies that it believes are standard and acceptable in the real
estate industry for the types of assets held by the Company.&nbsp; Following Newport&rsquo;s calculation of the estimated value
per share, our board of directors met on February&nbsp;20, 2012 to review in detail and consider the valuation analyses prepared
by Newport.&nbsp;At the February&nbsp;20, 2012 meeting, our Advisor presented a report to the board of directors with an estimated
per share value, and the board of directors conferred with the Advisor regarding the methodologies and assumptions used by Newport.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0.25in; text-indent: 0in; text-align: justify">The
following is a summary of the valuation methodologies used by Newport to value the Company&rsquo;s assets and liabilities:</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0.25in; text-indent: 0in; text-align: justify"><B><I>Adjusted
Net Asset Value Method:</I></B> The value of the shares of an investment or real estate holding company is closely related to
the value of the assets underlying the stock, according to Revenue Ruling 59-60, The first step in using the Adjusted Net Asset
Value Method is to obtain a balance sheet as close as possible to the valuation date. Each recorded asset and liability must be
examined and adjusted to fair value, to derive the fair value of the equity of the business under the asset approach.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0.25in; text-indent: 0in; text-align: justify">As
of December 31, 2011, the Company&rsquo;s assets included the following: (1) cash; (2) one notes receivable; (3) prepaid expenses;
(4) fixed assets; and (4) real estate investments. The Company&rsquo;s Advisor engaged independent third-party appraisal firms
to provide values for all real estate properties owned by the Company. Liabilities included (1) accounts payable; (2) other accrued
expenses; and (3) mortgages. Newport reviewed the assets of the Company and made adjustments to reflect each asset to fair value
or replacement value. Liabilities were also adjusted to fair value which approximated book value. The resultant adjusted asset
minus liability values were used to determine the adjusted net asset value of the Company.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; margin-left: 0.25in; text-indent: 0in; text-align: justify"><B><I>Discounted
Cash Flow Method: </I></B>The discounted cash flow method calculates the present value of the estimated future cash flows, discounted
to reflect the time value of money as well as the associated business and economic risks of the business. The sum of the present
value of invested capital cash flows during the forecast period, less the market value of interest-bearing debt, provides an indication
of equity value. For going concerns with a history of growth and profitability, this method is recognized as the most theoretically
supported indicator of value. However, this method requires estimates of risk and projections of income, expenses, investments
and liabilities that are difficult to project.</P>



<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 22.5pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B><I>Limitations of Estimated Value Per Share</I></B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">As mentioned above, the Company is providing
this estimated value per share to assist broker dealers that participated in the Company&rsquo;s initial public offering in meeting
their customer account statement reporting obligations. As with any valuation methodology, Newport&rsquo;s methodology is based
upon a number of estimates and assumptions that may not be accurate or complete. Different parties with different assumptions and
estimates could derive a different estimated value per share. Accordingly, with respect to the estimated value per share, the Company
can give no assurance that:</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

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<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">a
stockholder would be able to resell his or her shares at this estimated value;</FONT></TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">a
stockholder would ultimately realize distributions per share equal to the Company&rsquo;s estimated value per share upon liquidation
of the Company&rsquo;s assets and settlement of its liabilities or a sale of the Company;</FONT></TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
Company&rsquo;s shares of common stock would trade at the estimated value per share on a national securities exchange;</FONT></TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">an
independent third-party appraiser or other third-party valuation firm would agree with the Company&rsquo;s estimated value per
share; or</FONT></TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
methodology used to estimate the Company&rsquo;s value per share would be acceptable to FINRA or for compliance with ERISA reporting
requirements.</FONT></TD>
</TR></TABLE>



<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">Further, the estimated value per share
as of December 31, 2011 is based on a equal weighted average of (i) the estimated value of the Company&rsquo;s assets less the
estimated value of the Company&rsquo;s liabilities, or net asset value, and (ii) the present value of future expected income of
the Company, discounted for risk, or income value, divided by the actual number of shares outstanding for the basic estimated value
per share and anticipated number of shares outstanding for the fully diluted estimated value per share, all as of December&nbsp;31,&nbsp;2011.
The value of the Company&rsquo;s shares will fluctuate over time in response to developments related to individual assets in the
portfolio and the management of those assets and in response to the real estate and finance markets. The Company currently expects
to engage Newport, CBRE, Siino and/or similar independent valuation firms to update the estimated value per share in December 2012,
but is not required to update the estimated value per share more frequently than every 18 months.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B>Dividend Reinvestment Plan</B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">The Company does not currently have a
dividend reinvestment plan and as of December 31, 2011, has not made any distributions to shareholders.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B>Share Redemption Program</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">The Company does not currently have a
share redemption program.</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><B><I>Forward-Looking Statements </I></B></P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt"><I>&nbsp;The foregoing includes forward-looking
statements. These statements include statements regarding the intent, belief or current expectations of the Company and members
of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use
of words such as &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;seeks,&rdquo; &ldquo;anticipates,&rdquo; &ldquo;believes,&rdquo;
&ldquo;estimates,&rdquo; &ldquo;expects,&rdquo; &ldquo;plans,&rdquo; &ldquo;intends,&rdquo; &ldquo;should&rdquo; or similar expressions.
The valuation methodology for the Company&rsquo;s real estate investments assumes the properties realize the expected exit revenues
anticipated by the Company. Though these are the Company&rsquo;s and the Advisor&rsquo;s best estimates as of December 31, 2011,
the Company can give no assurance in this regard. These statements also depend on factors such as the Company&rsquo;s ability to
maintain sufficient liquidity to hold its real estate investments until the real estate market and third-party buyer demand improves,
the Company&rsquo;s ability to make required payments under its loan obligations, and other risks identified in Part I, Item IA
of the Company&rsquo;s annual report on Form 10-K and its quarterly reports filed with the SEC. Actual events may cause the value
and returns on the Company&rsquo;s investments to be less than that used for purposes of the Company estimated value per share.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt/120% Times New Roman, Times, Serif; margin: 0"><A NAME="a_003" TITLE="Item 9.01"></A><B>ITEM&nbsp;9.01 FINANCIAL STATEMENTS AND EXHIBITS</B></P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 94%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 1.5pt; font-size: 10pt; font-weight: bold">(d)</TD>
    <TD STYLE="padding: 1.5pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt; font-size: 10pt; font-weight: bold">Exhibits</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; padding: 1.5pt; font-size: 10pt; font-weight: bold; text-align: right">Ex.</TD>
    <TD STYLE="padding: 1.5pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; padding: 1.5pt; font-size: 10pt; font-weight: bold">Description</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding: 1.5pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding: 1.5pt; font-size: 10pt; text-align: right">99.1</TD>
    <TD STYLE="vertical-align: top; padding: 1.5pt; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-top: 1.5pt; padding-bottom: 1.5pt; font-size: 10pt">Information for Stockholders</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_004" TITLE="Sig"></A>SIGNATURE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.4in">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 0; margin-top: 0pt; margin-bottom: 6pt">&nbsp;</P>

<TABLE BORDER="0" CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2"><B></B>SHOPOFF PROPERTIES TRUST, INC.</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 50%">Date<B>: </B>February 29, 2012</TD>
    <TD STYLE="width: 4%">By:&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 46%">/s/ William A. Shopoff</TD></TR>
<TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-top: #000000 1px solid">William A. Shopoff<BR>President, Chief Executive Officer and Chairman<BR>
of the Board of Directors</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 0pt; margin-top: 0pt; margin-bottom: 6pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; text-indent: 0pt; margin-top: 0pt; margin-bottom: 6pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><U><A NAME="a_005" TITLE="Exhibit Index"></A>EXHIBIT INDEX</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; border-bottom: Black 1pt solid; padding-left: 2.35pt">Exhibit No.</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 85%; border-bottom: Black 1pt solid; padding-left: 2.35pt">Description&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 2.35pt">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 2.35pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 2.35pt">99.1</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="padding-left: 2.35pt">Information for Stockholders</TD></TR>
</TABLE>


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{"company-data": {"conformed-name": "Shopoff Properties Trust, Inc.", "cik": "0001382134", "assigned-sic": "6798", "irs-number": "205882165", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-139042", "film-number": "12653266"}, "business-address": {"street1": "8951 RESEARCH DRIVE", "city": "IRVINE", "state": "CA", "zip": "92618", "phone": "949-417-1396"}, "mail-address": {"street1": "8951 RESEARCH DRIVE", "city": "IRVINE", "state": "CA", "zip": "92618"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported):
February 20, 2012
Shopoff Properties Trust, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Maryland
(State or Other Jurisdiction of Incorporation)
333-139042
20-5882165
(Commission File Number)
(IRS Employer Identification No.)
2 Park Plaza Suite 700, Irvine, California
92614
(Address of Principal Executive Offices)
(Zip Code)
(877) 874-7348
(Registrant's Telephone Number, Including
Area Code)
Not applicable
(Former Name or Former Address, if Changed Since
Last Report)
Check the appropriate box below if the Form
8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(
see
General Instruction A.2. below):
£
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
£
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
£
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
£
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
TABLE OF CONTENTS
Item 7.01 Regulated FD Disclosure.
Item 8.01. Other Events.
Item 9.01 Financial Statements and Exhibits.
SIGNATURE
EXHIBIT INDEX
EX-99.1
ITEM 7.01 REGULATION FD DISCLOSURE
A letter to Shopoff Properties Trust Inc.'s
(the "Company") stockholders regarding its estimated value per share is attached as Exhibit 99.1 to this Current Report
on Form 8-K.
The information in this Item 7.01 of Form
8-K and the attached Exhibit 99.1 are furnished to the SEC, and shall not be deemed to be "filed" with the SEC for
any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject
to the liabilities of that section and shall not be deemed to be incorporated by reference into any filing under the Securities
Act of 1933, as amended, or the Securities Act, or the Exchange Act regardless of any general incorporation language in such filing.
ITEM 8.01 OTHER EVENTS
Estimated Value Per Share
On February 20, 2012, the Company's
board of directors approved a basic estimated value per share of the Company's common stock of $6.56 and a fully diluted
estimated value per share of the Company's common stock of $6.24 based on an equal weighted average of (i) the estimated
value of the Company's assets less the estimated value of the Company's liabilities, or adjusted net asset value method,
and (ii) the present value of future expected income of the Company, discounted for risk, or discounted cash flow method, divided
by the actual number of shares outstanding for the basic estimated value per share and anticipated number of shares outstanding
for the fully diluted estimated value per share, all as of December 31, 2011. There have been no material changes between
December 31, 2011 and the date of this filing to the net values of the Company's assets and liabilities that existed at December 31, 2011.
The Company is providing this estimated value per share to assist broker dealers that participated in the Company's initial
public offering in meeting their customer account statement reporting obligations under the National Association of Securities
Dealers Conduct Rule 2340 as required by the Financial Industry Regulatory Authority ("FINRA").
The estimated value per share was based
upon the recommendation and valuation by Newport Valuations, Inc. ("Newport"), an independent third-party firm hired
by the Company to complete said valuation, based on the methodologies and assumptions described further below. With regard to the
valuation of its real estate properties, the Company engaged two firms, CB Richard Ellis, Inc. ("CBRE"), and Kitty
Siino & Associates, Inc. ("Siino"), both independent third-party real estate valuation firms, to prepare real estate
valuations for the real estate properties owned by the Company. These real estate valuations by CBRE and Siino were then provided
to Newport with Shopoff Advisors LP (the "Advisor"), the Company's external advisor, providing Newport with
certain historical and prospective Company financial information. The estimated value per share recommendation and valuation by
Newport was then reviewed by the Advisor, who reviewed both the CBRE and Siino real estate valuations, and the methodologies and
assumptions used in determining Newport's valuation conclusions, and shared with the Company's board of directors its
views regarding the reasonableness of such methodologies and valuation conclusions. Nothing in the CBRE and Siino real estate valuations
caused the board of directors to question the reasonableness of Newport's valuation of the Company's common stock.
After considering all information provided in light of the board of directors' extensive knowledge of the Company's
assets, the board of directors unanimously agreed upon the estimated values per share of $6.56 and $6.24, which determination is
ultimately and solely the responsibility of the board of directors.
FINRA rules provide no guidance on the
methodology an issuer must use to determine its estimated value per share. The estimated value per share does not represent the
fair value of the Company's assets less its liabilities according to U.S. generally accepted accounting principles ("GAAP"),
nor does it represent a liquidation value of the Company's assets and liabilities or the amount at which the Company's
shares of common stock would trade on a national securities exchange.
Process and Methodology
The Company's goal in calculating
an estimated value per share is to arrive at a value that is reasonable and supportable using what the Company, its Advisor, and
Newport deem to be appropriate valuation methodologies and assumptions under then current circumstances in accordance with the
Company's Estimation Valuation Policy.
In arriving at the estimated value per
share, the Advisor discussed with Newport the valuation methodologies that it believes are standard and acceptable in the real
estate industry for the types of assets held by the Company.  Following Newport's calculation of the estimated value
per share, our board of directors met on February 20, 2012 to review in detail and consider the valuation analyses prepared
by Newport. At the February 20, 2012 meeting, our Advisor presented a report to the board of directors with an estimated
per share value, and the board of directors conferred with the Advisor regarding the methodologies and assumptions used by Newport.
The
following is a summary of the valuation methodologies used by Newport to value the Company's assets and liabilities:
Adjusted
Net Asset Value Method:
The value of the shares of an investment or real estate holding company is closely related to
the value of the assets underlying the stock, according to Revenue Ruling 59-60, The first step in using the Adjusted Net Asset
Value Method is to obtain a balance sheet as close as possible to the valuation date. Each recorded asset and liability must be
examined and adjusted to fair value, to derive the fair value of the equity of the business under the asset approach.
As
of December 31, 2011, the Company's assets included the following: (1) cash; (2) one notes receivable; (3) prepaid expenses;
(4) fixed assets; and (4) real estate investments. The Company's Advisor engaged independent third-party appraisal firms
to provide values for all real estate properties owned by the Company. Liabilities included (1) accounts payable; (2) other accrued
expenses; and (3) mortgages. Newport reviewed the assets of the Company and made adjustments to reflect each asset to fair value
or replacement value. Liabilities were also adjusted to fair value which approximated book value. The resultant adjusted asset
minus liability values were used to determine the adjusted net asset value of the Company.
Discounted
Cash Flow Method:
The discounted cash flow method calculates the present value of the estimated future cash flows, discounted
to reflect the time value of money as well as the associated business and economic risks of the business. The sum of the present
value of invested capital cash flows during the forecast period, less the market value of interest-bearing debt, provides an indication
of equity value. For going concerns with a history of growth and profitability, this method is recognized as the most theoretically
supported indicator of value. However, this method requires estimates of risk and projections of income, expenses, investments
and liabilities that are difficult to project.
Limitations of Estimated Value Per Share
As mentioned above, the Company is providing
this estimated value per share to assist broker dealers that participated in the Company's initial public offering in meeting
their customer account statement reporting obligations. As with any valuation methodology, Newport's methodology is based
upon a number of estimates and assumptions that may not be accurate or complete. Different parties with different assumptions and
estimates could derive a different estimated value per share. Accordingly, with respect to the estimated value per share, the Company
can give no assurance that:
·
a
stockholder would be able to resell his or her shares at this estimated value;
·
a
stockholder would ultimately realize distributions per share equal to the Company's estimated value per share upon liquidation
of the Company's assets and settlement of its liabilities or a sale of the Company;
·
the
Company's shares of common stock would trade at the estimated value per share on a national securities exchange;
·
an
independent third-party appraiser or other third-party valuation firm would agree with the Company's estimated value per
share; or
·
the
methodology used to estimate the Company's value per share would be acceptable to FINRA or for compliance with ERISA reporting
requirements.
Further, the estimated value per share
as of December 31, 2011 is based on a equal weighted average of (i) the estimated value of the Company's assets less the
estimated value of the Company's liabilities, or net asset value, and (ii) the present value of future expected income of
the Company, discounted for risk, or income value, divided by the actual number of shares outstanding for the basic estimated value
per share and anticipated number of shares outstanding for the fully diluted estimated value per share, all as of December 31, 2011.
The value of the Company's shares will fluctuate over time in response to developments related to individual assets in the
portfolio and the management of those assets and in response to the real estate and finance markets. The Company currently expects
to engage Newport, CBRE, Siino and/or similar independent valuation firms to update the estimated value per share in December 2012,
but is not required to update the estimated value per share more frequently than every 18 months.
Dividend Reinvestment Plan
The Company does not currently have a
dividend reinvestment plan and as of December 31, 2011, has not made any distributions to shareholders.
Share Redemption Program
The Company does not currently have a
share redemption program.
Forward-Looking Statements
The foregoing includes forward-looking
statements. These statements include statements regarding the intent, belief or current expectations of the Company and members
of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use
of words such as "may," "will," "seeks," "anticipates," "believes,"
"estimates," "expects," "plans," "intends," "should" or similar expressions.
The valuation methodology for the Company's real estate investments assumes the properties realize the expected exit revenues
anticipated by the Company. Though these are the Company's and the Advisor's best estimates as of December 31, 2011,
the Company can give no assurance in this regard. These statements also depend on factors such as the Company's ability to
maintain sufficient liquidity to hold its real estate investments until the real estate market and third-party buyer demand improves,
the Company's ability to make required payments under its loan obligations, and other risks identified in Part I, Item IA
of the Company's annual report on Form 10-K and its quarterly reports filed with the SEC. Actual events may cause the value
and returns on the Company's investments to be less than that used for purposes of the Company estimated value per share.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d)
Exhibits
Ex.
Description
99.1
Information for Stockholders
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SHOPOFF PROPERTIES TRUST, INC.
Date
:
February 29, 2012
By:
/s/ William A. Shopoff
William A. Shopoff
President, Chief Executive Officer and Chairman
of the Board of Directors
EXHIBIT INDEX
Exhibit No.
Description
99.1
Information for Stockholders