MacKenzie Capital Management LP has launched an unsolicited tender offer to purchase up to 1.5 million shares of InvenTrust Properties Corp., a publicly registered non-traded real estate investment trust formerly known as Inland American Real Estate Trust, for $0.83 per share. The tender offer expires on September 25, 2020.
InvenTrust recently recommended that stockholders reject MacKenzie’s offer and not tender their shares.
InvenTrust suspended its share repurchase program and distribution reinvestment plan in June until further notice, citing consequences stemming from the COVID-19 pandemic. The company indicated that the suspensions will be temporary.
Also citing the economic disruption of COVID-19, InvenTrust did not publish an updated net asset value per share in May 2020, and its most recent NAV per share was $3.14 per share as of May 1, 2019. This is $2.31 per share, or approximately 378 percent, above MacKenzie’s offer price.
The REIT’s annual distribution rate was $0.0759 per share as of the last quarterly distribution paid to stockholders of record as of March 31, 2020, a 2.4 percent yield on May 2019’s estimated value of $3.14 per share.
InvenTrust invests in grocery-anchored open-air centers in the Sun Belt region of the U.S. and currently oversees a portfolio of 65 retail properties (85 percent are grocery-anchored). The offering launched in August 2005, and the company became a self-managed REIT in 2014.
MacKenzie Capital Management LP and its affiliates have been in the business of purchasing illiquid real estate securities, both in open market transactions and by means of tender offers, since 1982. The firm claims to have acquired more than $170 million in such securities for affiliated portfolios over the last 10 years.