The board of Inland Real Estate Income Trust Inc., a publicly registered, non-traded real estate investment trust, has changed both the record date and the expected payment date of the first quarter of 2020 distribution in order to conserve cash, citing the uncertainty of the coronavirus (COVID-19) pandemic.
The nearly $0.23 per share distribution was supposed to be paid on April 1, 2020 to stockholders of record as of the close of business on March 31, 2020.
The company has revised the payment date to June 1, 2020 to stockholders of record on May 29, 2020, however, the company indicated that it may further delay these dates as the situation surrounding COVID-19 develops.
“The difficult decision to postpone the expected payment date of the 2020 first quarter distribution was made only after thoughtful deliberation regarding its immediate effects on stockholders and what is best for the long-term health of the company,” said Mitchell Sabshon, president and CEO, in a letter to shareholders.
“We are sensitive to the difficulties this delay may pose for individual stockholders who rely on receiving regular distributions; however, we believe preserving cash to meet our interest and principal payments on mortgage loans and our credit facility and to pay our operating expenses is prudent and responsible under the circumstances,” he added. “If we find it necessary to continue to conserve cash and not pay distributions or to pay reduced distributions in future quarters, we hope that this situation will be only temporary.”
Until a distribution is paid, no cash will be available to be reinvested under the company’s distribution reinvestment plan. The share repurchase plan provides a funding limit for repurchases that is a percentage of the net proceeds the company receives from issuing DRP shares. Until the REIT pays a distribution and receives net proceeds from the DRP, the SRP provides that no shares will be repurchased, the company said.
In recent news, the REIT declared an estimated net asset value per share of $18.15 for its common stock as of December 31, 2019.
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.