The board of InvenTrust Properties Corp., a publicly registered non-traded real estate investment trust, has started a process to evaluate liquidity alternatives, including a potential listing on a national securities exchange.
InvenTrust said that the COVID-19 pandemic and related uncertainties delayed its earlier process of exploring and executing on a potential liquidity alternative, but it reinitiated the process based on “recent developments” in business and market conditions.
To that end, the company has implemented several corporate initiatives to prepare for a liquidity alternative. The board approved a 5 percent increase to the dividend rate starting with the fourth quarter 2021 distribution to be paid in January 2022. This is the company’s second dividend rate increase in 2021.
The board also approved a one-for-ten reverse stock split of each issued and outstanding share of common stock, effective August 5th. As a result of the reverse stock split, shareholders received one share of post-split common stock for every 10 shares of pre-split common stock they held. Fractional shares will be rounded up to the nearest whole share.
InvenTrust said that its business remains unchanged following its reverse stock split. Following the split, the new dividend for the third quarter will be $0.205 per share. On an annualized basis, stockholders will receive $0.821 per share.
The company’s most recent net asset value per share was $2.89 as of December 1, 2020.
In connection with the liquidity alternatives exploration, the company has suspended the share repurchase program as of September 5, 2021. The scheduled September 27, 2021 redemption date will not be executed and all repurchase requests currently in queue for repurchase will be removed, the company said.
In February, The DI Wire reported that Thomas McGuinness, chief executive officer, will be retiring from the company, and the board approved a succession plan for the REIT’s executive team.
Daniel (DJ) Busch was appointed as chief executive officer. He previously served as executive vice president, chief financial officer and treasurer of InvenTrust since 2019 and president since February 2021. Mike Phillips, formerly senior vice president and chief accounting officer, was appointed CFO and treasurer.
“Prior to joining the company in 2019, InvenTrust made tremendous progress to position the company’s premier Sunbelt, grocery-anchored portfolio and capital structure for a potential liquidity event,” said Busch. “Our portfolio and strategy have been validated by the performance exhibited during COVID-19 and is well-positioned for the future. Our ability to increase our dividend a second time this year is a testament to the portfolio’s cash flow durability and our low-leverage model. Over the coming months, the InvenTrust team will continue to focus on executing on our strategy and providing value to our stockholders.”
InvenTrust Properties, formerly known as Inland American Real Estate Trust, invests in grocery-anchored shopping centers in the Sun Belt region of the U.S. The offering launched in August 2005, became a self-managed REIT in 2014, and oversees a portfolio of 65 retail properties, representing 10.8 million square feet of retail space.