Inland Real Estate Income Trust, Inc. has reported a strong financial performance for the quarter ended March 31, 2024. The company has maintained a solid financial position, with 36,130,329 shares of common stock outstanding. The company is a non-accelerated filer and not an emerging growth company. They have filed all required reports during the preceding 12 months and have been subject to filing requirements for the past 90 days.
The company reported a net loss of $3.3 million for the first quarter of 2024, an improvement from the $5.3 million net loss in the first quarter of 2023.
Rental Income increased by $0.7 million or 1.8% compared to the first quarter of 2023, primarily driven by higher base rents.
Property Expenses increased by $0.4 million or 5.2% compared to the first quarter of 2023, mainly due to higher snow removal costs, repairs and maintenance expenses, and insurance premiums.
Real Estate Tax Expense decreased by $0.5 million or 9.0% due to changes in prior year actual estimates.
General and Administrative Expenses were flat at $1.5 million.
Business Management Fee decreased by $0.5 million or 17.0% due to an amendment to the agreement that reduced the base fee.
Depreciation and Amortization decreased by $0.4 million or 2.4% due to a larger amount of fully amortized assets.
Interest Expense increased slightly by $21,000.
As of March 31, 2024, the company owned 52 properties located in 24 states, comprising 7.2 million square feet.
Occupancy Rates: Physical occupancy was 92.1% and economic occupancy was 92.5%.
Anchor Tenants: The top 10 tenants, mostly grocery stores and discount retailers, accounted for 23.7% of annualized base rent. The company has strong anchors but faces risk from further big box retailer bankruptcies.
Lease Expirations: Over the next 3 years, leases expiring comprise 42.2% of annualized base rent, with reasonably strong renewal spreads.
As of March 31, 2024, the company had:
The company has no debt maturities in the next 12 months as of May 8, 2024.
Cash from Operations was $11.9 million for the quarter, in line with distributions paid of $4.9 million.
Capital Expenditures were $3.1 million, up from $1.0 million last year, but expected to be funded from operating cash flows.
Leverage remains reasonable at 52% of gross real estate assets. The company actively manages its leverage and interest rate risk.
The company’s focus remains on increasing the proportion of grocery-anchored shopping centers in its portfolio and achieving a liquidity event. However, uncertainty persists around the timing, given evolving market conditions.