Inland Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust, has provided its shareholders with a COVID-19 related business update.
The company noted that while 3 percent of its tenants remain fully closed as of June 30, 2020, many more are operating in a materially reduced capacity as a result of restrictions on non-essential businesses.
Rent collections for the month of April were at 75 percent, while May and June were 66 percent and 59 percent, respectively. The company indicated that it has negotiated rent deferral agreements with tenants representing 39 percent of its annualized base rent as of June 30, 2020.
Inland REIT currently has a $350 million credit facility comprised of a $150 million term loan and a $200 million revolving line of credit.
The company drew an additional $24 million on its revolving line of credit in April, bringing the outstanding balance on the credit facility to $255 million. The company said that the draw was made in order to maintain a higher level of liquidity to meet its mortgage payments and pay other operating expenses amid reduced rental receipts. Debt service has been paid on its 18 non-recourse mortgage loans for the months of April, May and June, the company noted.
In late May, the company suspended distributions, as well as its distribution reinvestment plan and share repurchase plan until further notice. The company indicated that the suspensions are temporary and cited uncertainty surrounding the COVID-19 pandemic.
“Operating in the retail real estate sector, a large portion of which is already dealing with challenges from online shopping, the potential additional adverse effects of the pandemic on our company’s financial condition, results of operations, and cash flow remain unclear but could be material…,” Inland REIT stated in the letter to shareholders.
“As stewards of our stockholders’ capital, preserving cash to ensure we can meet our financial obligations is the prudent course of action and in the best interest of our stockholders and our company as a whole,” the company added. “Having said that, we look forward to emerging from the current challenges of the COVID-19 pandemic and, at the earliest, prudent time, being able to resume distributions on our common stock, our dividend reinvestment plan and our share repurchase plan.”
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.