All data as of September 30, 2016
Debt to Total Assets*44%
Number of Properties56
Total Square Feet6,345,537
Distributions Paid$39,235,000 (YTD through 09.30.16)
Annualized Distribution Rate26.65%
Tenant Diversification (By Gross Leaseable Area)
Property Diversification (By Annualized Base Rent)
Top 5 Tenants
|Tenant Name||# of Leases||% of Annualized Base Rent||Credit Rating3|
|Dick’s Sporting Goods||6||3.9||NR|
|Ulta Salon, Cosmetics & Fragrance Inc.||10||2.4||NR|
Debt Maturity & Principal Payments
|Mortgages and Credit Facility Payable|
Lease Maturity (Percent of Leases Expiring)
1 Economic occupancy is defined as the percentage of total gross leasable area for which a tenant is obligated to pay rent under the terms of its lease agreement, regardless of the actual use or occupation by that tenant of the area being leased. Economic occupancy excludes square footage that Inland Income Trust owns but which is not occupied by a tenant and which is subject to an earnout component on the original purchase price.
2 Until April 7, 2016, distributions were equal to a 6.0% annualized distribution rate based on a $10.00 share price, and from and after April 7, 2016 distributions were equal to a 6.65% distribution rate based on Inland Income Trust’s estimated value of $9.02 per share. Distributions are payable monthly and not guaranteed and may be modified at any time. As of September 30, 2016, approximately 31% of distributions paid to stockholders of record since inception (10/18/2012) were paid from the net proceeds of Inland Income Trust’s “best efforts” offering and distribution reinvestment plan (return of capital), and approximately 69% of distributions were paid from cash flow from operations (may be return of capital) and sponsor contributions. When Inland Income Trust makes cash distributions using offering or financing proceeds, it will have less proceeds to invest in properties, and this may lower its overall return potential.
3 These Standard & Poor’s (“S&P”) credit ratings express the agency’s opinion about the ability and willingness of a company to meet its financial obligations in full and on time. Credit-quality ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest). “NR” is used to classify securities for which a rating is not available.
This material is neither an offer to sell nor a solicitation of an offer to buy any security, which can be made only by a prospectus filed or registered with appropriate state and federal regulatory agencies, and sold only by broker dealers authorized to do so.
Important Risk Factors to Consider
Some of the risks related to investing in commercial real estate include, but are not limited to: market risks such as local property supply and demand conditions; tenants’ inability to pay rent; tenant turnover; inflation and other increases in operating costs; adverse changes in laws and regulations; relative illiquidity of real estate investments; changing market demographics; acts of God such as earthquakes, floods or other uninsured losses; interest rate fluctuations; and availability of financing.
An investment in Inland Income Trust’s shares involves significant risks. If Inland Income Trust is unable to effectively manage these risks, it may not meet its investment objectives and investors may lose some or all of their investment. Some of the risks related to investing in Inland Income Trust include, but are not limited to: the board of directors, rather than the trading market, determines the offering price of shares; there is limited liquidity because shares are not bought and sold on an exchange; repurchase programs may be modified or terminated; a typical time horizon for an exit strategy is longer than five years; there is no guarantee that a liquidity event will occur; distributions cannot be guaranteed and may be paid from sources other than cash fl ow from operations, including borrowings and net offering proceeds; and failure to continue to qualify as a REIT and thus being required to pay federal, state and local taxes. Please consult Inland Income Trust’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q for more information on the specific risks.