InvenTrust Announces Suspension of Share Redemptions and Distribution Reinvestments
July 15, 2020
In a letter to stockholders dated July 15, 2020, InvenTrust Properties announced the suspension of the Company’s SRP and DRP effective July 11, 2020.
In the letter, the REIT’s Board and management stated that the COVID-19 crisis continues to rapidly evolve and market conditions remain uncertain. The Board and management reviewed many factors related to the REIT’s business in order to make sound strategic decisions. Some of the factors include:
• The heightened uncertainty around the nation’s economy.
• The spike in COVID-19 cases in the REIT’s markets of Florida, Texas and Georgia, which are leading to more government mandated business closures.
• The REIT’s rent collection rates, now and in the future.
• The low participation level in the dividend reinvestment plan (“DRP”). The small dollar amounts collected from the DRP provided InvenTrust limited funds to repurchase shares through the share repurchase program (“SRP”), now and in the future.
On June 26, 2020, before the SRP suspension, InvenTrust did repurchase all shares in death, disability and required minimum distribution SRP categories. Any SRP requests not repurchased in June will remain in the SRP queue in the event InvenTrust reinstates the program.
The REIT’s Board of Directors will maintain the current dividend rate, which will be paid out in July.
A total of 83% of the REIT’s centers are anchored by a grocer, and at the time of the stockholder letter, InvenTrust’s second quarter rent collection was about 77%.
For now there is no change to InvenTrust’s distribution rate. Each shareholder of record as of the close of business on June 30, 2020, will receive $0.019 per share.
Source: SEC
