InvenTrust Announces Increased Distribution and 8% Decline in NAV
January 18, 2021 | James Sprow | Blue Vault
In a letter to shareholders, InvenTrust announced that starting April 2021, the Company’s dividend rate will increase 3% to an annualized rate of $0.0782 per share. This is the fifth consecutive year of a three percent increase in the REIT’s annual distribution rate. In the letter to shareholders dated January 15, 2021, the REIT stated that “Unlike many retail REITs that reduced, or suspended, their distribution in 2020, InvenTrust has maintained the Company’s distribution rate and continued to pay our dividend throughout the year. The Company’s ability to pay our dividend and now increase our rate is driven by the essential nature of our portfolio and disciplined approach to balance sheet management.”
For the January 15, 2021 distribution, each shareholder of record as of the close of business on December 30, 2020 will receive $0.019 per share for the fourth quarter distribution.
On December 21, 2020, InvenTrust published a new estimated share value of $2.89. Duff & Phelps, LLC, an independent, third-party valuation firm completed a detailed analysis of the Company’s portfolio of assets and balance sheet as of December 1, 2020. From that analysis Duff & Phelps provided the Audit Committee of the Board of Directors a range of per share values ($2.76 to $3.03) for the Company. From that range, the InvenTrust Board selected the mid-point of $2.89.
“As anticipated, the negative impact of the COVID-19 pandemic on the retail real estate industry contributed to the decline in InvenTrust’s estimated share value. Despite the decline in our estimated share value, the portfolio strategy to own essential retail in markets with strong demographics remains intact. The values of grocery-anchored centers in the markets where we operate have likely held up better than almost all other retail property types according to industry experts.”
The REIT also removed all accounts in the suspended share repurchase program queue scheduled to be repurchased. “InvenTrust believes, with the new, lower estimated share value, it is prudent for shareholders to re-enroll in any potential share repurchase presented by the Company in the future.”
The Company announced on June 11, 2020, the Board voted to suspend the SRP and the DRIP until further notice. Pursuant to the terms of the SRP and DRIP, the suspensions went into effect on July 11, 2020.
Source: SEC
