The board of Inland Real Estate Income Trust Inc., a publicly registered, non-traded real estate investment trust, has determined an estimated net asset value per share of $18.15 as of December 31, 2019.
CBRE Capital Advisors, Inc. was engaged by Inland Income Trust to conduct the valuation analysis, which complied with industry guidelines, and determined an estimated per share NAV range of $17.88 to $20.00 per share, and a mid-point of $18.94 per share.
Last March, the company declared a NAV per share of $20.12. REIT shares were originally sold for $10.00 each, but the company conducted a 1-for-2.5 reverse stock split in 2018, resulting in a final offering price of $25.00 per share.
“Our portfolio continues to perform well, including maintaining above average economic occupancy of 94.4 percent as of December 31, 2019,” said Mitchell Sabshon, president and CEO of the company. “During 2019, the portfolio also had a favorable 81 percent lease retention based on square footage, which includes an 86 percent anchor tenant lease retention, and new and renewal leases were executed, respectively, at 16.6 percent and 3.6 percent higher rental rates per square foot than the comparable expiring leases.”
He added, “In the face of a challenging environment for the retail real estate industry, the company’s total return for the three-year period ended December 31, 2019 was -1.9 percent,”
In determining the NAV, the board took into account that retail real estate continues to experience volatility as a result of, among other things, shifting consumer preferences and Internet competition.
“The turbulence in the current retail real estate market is pervasive,” said Sabshon, noting that the FTSE NAREIT Shopping Center Index, an index that tracks the performance of the publicly-listed U.S. shopping center REIT industry, experienced a total return of -5.31 percent for the three-year period ended December 31, 2019.
As previously announced, the REIT’s strategic plan centers around owning a portfolio of grocery-anchored properties in strong secondary and tertiary markets with lower exposure to big-box retailers, as well as redevelopment of select centers within the existing portfolio.
During 2019, the company sold twelve Dollar General stores and completed two redevelopment projects and has a third underway.
Inland Real Estate Income Trust, sponsored by Inland Real Estate Investment Corporation, is focused on acquiring grocery-anchored retail assets. The company 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. Inland Income Trust currently owns 44 retail properties in 21 states, totaling approximately 6.5 million square feet occupied by 715 tenants.