InvenTrust Completes Spin-Off, Highlands Now a Stand-Alone REIT
InvenTrust Properties Corp. a publicly registered non-traded real estate investment trust formerly known as Inland American Real Estate Trust, completed the spin-off of its non-core assets into Highland REIT, another non-traded real estate investment trust.
Through the pro rata distribution of 100 percent of Highlands common stock to InvenTrust stockholders of record on April 25, 2016, each InvenTrust stockholder received one share of Highlands common stock for every share of InvenTrust common stock. InvenTrust stockholders now own shares in both InvenTrust and Highlands. The number of InvenTrust shares held by stockholders did not change as a result of the distribution of Highlands common stock.
“This is the next step in executing our long-term portfolio strategy,” said Thomas P. McGuinness, president and chief executive officer of InvenTrust. “This event brings InvenTrust closer to becoming a pure-play retail REIT, while also allowing the management teams at both companies to focus solely on their portfolio of assets to maximize value for the stockholders.”
The Highlands board of directors established an estimated value of its common of $0.36 per share. InvenTrust expects to announce its new estimated share value this month, which will reflect the spin-off. As a result of the spin-off, InvenTrust expects the value of its shares to be lower, as the value its common stock will no longer reflect the value of the Highlands portfolio.
Highlands, which was formed to hold InvenTrust’s remaining non-core assets, is an independent, self-managed, non-traded REIT. Its portfolio consists of seven single- and multi-tenant office assets, two industrial assets, six retail assets, two correctional facilities, four parcels of unimproved land and one bank branch.
InvenTrust became a self-managed REIT in 2014 and is an owner and operator of 112 multi-tenant retail properties. The company’s total retail portfolio is comprised of 18.5 million square feet of retail space in 24 states. As of December 31, 2015, the company also owned 11,039 student housing beds and 5.7 million square feet of non-core space. The pending sale of its student housing platform is expected to close by the end of the second quarter 2016. InvenTrust no longer owns any shares of Highlands common stock.
