Inland Real Estate Income Trust, Inc. (“Inland Income Trust” or “the Company”), a publicly registered, non-traded real estate investment trust, announced today that its Board of Directors (“the Board”) determined an estimated per share net asset value (“NAV”) of $18.15 as of December 31, 2019.1 CBRE Capital Advisors, Inc. was engaged by Inland Income Trust to conduct the valuation analysis, which complied with industry guidelines, and determined an estimated per share NAV range of $17.88 to $20.00 per share.
“Our portfolio continues to perform well, including maintaining above average economic occupancy of 94.4% as of December 31, 2019. During 2019, the portfolio also had a favorable 81% lease retention based on square footage, which includes an 86% anchor tenant lease retention, and new and renewal leases were executed, respectively, at 16.6% and 3.6% higher rental rates per square foot than the comparable expiring leases. In the face of a challenging environment for the retail real estate industry, the Company’s total return2 for the three-year period ended December 31, 2019 was -1.9%,” said Mitchell Sabshon, president and CEO of the Company. In determining the NAV, the Board took into account that retail real estate continues to experience volatility as a result of, among other things, shifting consumer preferences and Internet competition. “The turbulence in the current retail real estate market is pervasive,” added Mr. Sabshon, noting that the FTSE NAREIT Shopping Center Index, an index that tracks the performance of the publicly-listed U.S. shopping center REIT industry, experienced a total return of -5.31% for the three-year period ended December 31, 2019.
As previously announced, the Company’s strategic plan centers around owning a portfolio of grocery-anchored properties in strong secondary and tertiary markets with lower exposure to big-box retailers, as well as redevelopment of select centers within the existing portfolio. During 2019, the Company sold twelve Dollar General stores and completed two redevelopment projects and has a third underway. Inland Income Trust currently owns 44 retail properties in 21 states, totaling approximately 6.5 million square feet occupied by 715 tenants.
1 Please see the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on March 5, 2020, for a complete discussion of the methodologies, assumptions and limitations used to determine the estimated per share NAV.
2 Total return is calculated as follows: (End of Period NAV- Beginning of Period NAV+ Distributions) / Beginning of Period NAV.
About Inland Real Estate Income Trust, Inc.
Inland Real Estate Income Trust, Inc. was formed to acquire, directly or indirectly, a portfolio of commercial real estate located throughout the United States with a focus specifically on grocery-anchored retail assets. Inland Real Estate Income Trust, Inc. was sponsored by Inland Real Estate Investment Corporation. For more information, please visit www.inland-investments.com.
