In a letter to shareholders, Inland American Real Estate Trust, Inc. (Inland American) announced today that it would discontinue paying monthly distributions beginning in the third quarter of 2015. Instead, the non-traded REIT will pay quarterly distributions as a means of reducing expenses.
According to the letter, “Switching from monthly to quarterly distributions will provide cost savings of over $1 million in printing and mailing costs alone.”
The cost cutting measure is part of the company’s effort to be a more efficient organization.
Investors will receive monthly distributions into July, which will be payment for June’s distributions. The quarterly payouts will begin in early October.
The REIT also shared with investors that the previously disclosed non-public fact finding investigation by the Securities and Exchange Commission (SEC) was terminated on March 24, 2015. The SEC had been looking into whether Inland American had violated certain provisions of the federal securities laws. No enforcement actions were recommended as a result of the concluded investigation.
“We are pleased that we were able to cooperate with the SEC and bring this multi-year investigation to a favorable conclusion,” wrote the REIT to shareholders.
To read Inland American’s shareholder letter, click here.