In 2019, retailers that were responsive to consumer preferences did well, in general, amid evolving shopping habits and turbulence in the retail real estate and capital markets.

Mitchell A. Sabshon President and Chief Executive Officer

2019 Portfolio Highlights

  • Demonstrated strong leasing volume with 26 new tenants leasing more than 154,000 square feet of retail space
  • Attained 81% tenant retention with 102 leases renewed representing more than 645,000 square feet
  • Achieved 94.4% economic occupancy, maintaining our multi-year track record of 94% or higher since inception
  • Realized 16.6% and 3.6% comparable leasing spread on new leases and renewals, respectively
  • Completed two development projects and have a third underway to generate new income streams and leverage the desirable locations of our centers
  • Fully covered distributions from net cash flows provided by operating activities

Grocery Assets, Minimizing Big Box Risk

On February 11, 2019, the Inland Income Trust board of directors approved a strategic plan with the goals of providing future liquidity to investors and creating long-term stockholder value. The strategic plan centers around owning a primarily grocery-anchored portfolio with lower exposure to big box retailers. We feel, in general, that big box retailers will continue to be challenged. Through this strategic plan, we are proactively reducing our exposure to concepts that we believe have less relevance, and instead aim to minimize portfolio risk by repositioning away from big box retail centers.

2019 Strategic Plan Timeline

  • feb Announce
    strategic plan
  • mar Evaluate
    existing
    portfolio
  • apr Identify
    potential
    assets to sell
  • jun List
    properties
    for sale
  • oct Evaluate
    offers and market
    value
  • nov Assets put
    under
    contract
  • dec Execute sales

Reduced big box exposure

The 15 recent asset sales positively impacted our portfolio composition, reducing big box exposure from 17 percent to 14 percent and increasing the percent of our portfolio anchored or shadow-anchored by a grocer from 82 percent to 86 percent. In addition, all single-tenant assets have been sold, creating a more homogenous, core portfolio of grocery-anchored or shadow-anchored properties.

Property Type Breakdown by ABR 2018

Property Type Breakdown by ABR 2019*

* Portfolio composition following the January 2020 dispositions of Whispering Ridge, 2727 Iowa Street, and Treasure Valley

From Renderings to reality

Leading National Beauty Supplies Retailer

Wedgewood Commons

Olive Branch, MS

Inland Income Trust procured a 10,000 square-foot ground-up development at Wedgewood Commons shopping center for a leading national beauty supplies retailer.

  • Est. Delivery Nov. 2020
  • Square Feet 10,000
  • Est. Return
    on investment 8.6%
  • Anchored by

Pet Supplies Plus Development

Pick’n Save Shopping Center

West Bend, WI

Pet Supplies Plus, the largest independent pet retailer known for its ‘minus the hassle’ brick-and-mortar customer experience, built a new storefront at Inland Income Trust’s Pick’n Save shopping center in West Bend, Wisconsin.

  • Date Delivered Nov. 2019
  • Square Feet 6,600
  • Est. Return
    on investment 8.1%
  • Anchored by

2019: A year of strong operational performance

Top 10 Tenants

Three leading grocers in our top tenant list comprising 7.8% of the portfolio ABR

  • 3.5%

  • 3.4%

  • 3.4%

  • 3.0%

  • 2.7%

  • 2.4%

  • 2.4%

  • 2.0%

  • 2.0%

  • 1.9%

Diverse Geographic Footprints

12% of portfolio in the west, 26% in the south, 21% in the midwest, and 41% in the east

West
12%
South
26%
Midwest
21%
East
41%

Solid at the financial level in 2019

No Debt Maturing in 2020

(in millions)

Balance Sheet
(in thousands) 12/31/19 12/31/18 12/31/17
Balance Sheet Data:
Total Assets $1,254,559 $1,320,069 $1,375,370
Mortgage Loans and Credit Facility Payable, net 681,327 705,884 691,465
Operating Data:
Net Income (Loss) (11,420) (23,276) (19,102)
Funds from Operations (FFO) 47,412 49,964 51,232
Modified Funds from Operations (MFFO) 45,167 47,291 48,893