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.
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.
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.
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.
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.
Three leading grocers in our top tenant list comprising 7.8% of the portfolio ABR
12% of portfolio in the west, 26% in the south, 21% in the midwest, and 41% in the east
|Balance Sheet Data:|
|Mortgage Loans and Credit Facility Payable, net||681,327||705,884||691,465|
|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|