Inland Real Estate Income Trust Considers Sale, Other Strategic Alternatives
The board of directors of Inland Real Estate Income Trust Inc. – a publicly registered, non-traded real estate investment trust – have initiated a process to review strategic alternatives, including the sale of the REIT, according to information shared yesterday afternoon.
As previously disclosed, the REIT had been focused on a strategic plan centered on both owning a portfolio of grocery-anchored properties with lower exposure to big box retailers and listing the company’s common stock on a national securities exchange.
Inland REIT said it will engage a financial adviser to assist in the strategic review, and that there is no certainty that the strategic review will result in a transaction. The company also stated that it does not intend to discuss or disclose developments with respect to the process unless and until otherwise determined that further disclosure is appropriate or required by regulation or law. No formalized timetable has been established for completing the review.
In connection with the strategic review, the REIT announced in a letter to its shareholders that it has suspended its distribution reinvestment plan and share repurchase program as it evaluates its options.
Inland Real Estate Income Trust, sponsored by Inland Real Estate Investment Corporation, commenced operations in October 2012 and closed the offering in October 2015 after raising $834.4 million, excluding proceeds from the company’s distribution reinvestment plan. As of Dec. 31, 2023, it owned 52 retail properties, totaling 7.2 million square feet. A majority of the properties are multi-tenant, necessity-based retail shopping centers located primarily in major regional markets and growing secondary markets throughout the United States. Grocery-anchored or grocery shadow-anchored shopping center properties represented 87% of the REIT’s annualized base rent. Its portfolio had physical and economic occupancy of 91.6% and 92%, respectively.
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