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Third-PartyTender Offer for InvenTrust Common Stock and Increased Distribution Rate

April 10, 2018

Third-PartyTender Offer for InvenTrust Common Stock and Increased Distribution Rate

April 10, 2018 | James Sprow | Blue Vault

Liquidity Partners Trust I has offered to pay $3.1 million to shareholders of InvenTrust Properties Corp. to purchase up to 2 million shares of the company's common stock at $1.55 per share.

The tender offer will expire on May 14 at 11:59 p.m EST.

InvenTrust, a publicly-registered nontraded real estate investment trust, approved an unaudited and estimated net asset value per share of $3.29 for the company's common stock as of May 1, 2017.

InvenTrust's share repurchase program was suspended indefinitely on Feb. 24, 2015.

As of December 31, 2017, the Company's multi-tenant retail portfolio included 71 wholly owned multi-tenant retail assets with 12.4 million square feet, of which approximately 94.2% was occupied. In addition, the Company held a significant investment in two operating real estate joint ventures, one of which the Company owns an interest in as well as manages 15 multi-tenant retail assets with 2,976,403 square feet within the joint venture.

The Company acquired eight multi-tenant retail assets during 2017 for a total of approximately $633.4 million.  The company sold seven multi-tenant retail assets during 2017 for approximately $186.4 million and a non-core office asset for $53.5 million.

According to a letter to stockholders dated April 6, 2018, the Board of Directors of InvenTrust has approved a three percent increase in the company’s distribution rate, payable beginning with the company’s April 6, 2018 quarterly distribution payment. The new rate means each stockholder will receive an annualized distribution rate of $0.0716 per share for calendar year 2018. The first quarter of 2018 cash distribution will equal $0.0179 per share

The letter to shareholders also included the following metrics/comments:

Retail occupancy rates are strong, in the range of 93 to 95 percent

91 percent of all retail sales are generated at a physical store

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We believe Amazon purchasing Whole Foods in 2017 validates a physical market presence is needed to be successful in the grocery business

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Grocery and discount retailers opened up a net 1,785 stores in 2017, in an environment where apparel-focused retailers closing over 3,400 net locations

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InvenTrust’s average base rent has increased to almost $17 per square foot as of 12/31/17, up from $15 as of 12/31/15

Sources:  S&P Global Market Intelligence, InvenTrust 8-K 4/6/18; Blue Vault Q4 2017 NTR Review

 

Learn more about Inland Real Estate Investment Corporation on the Blue Vault Sponsor Focus page

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