Inland Real Estate Income Trust Files 2023 10-K

TL;DR

<b>Inland Real Estate Income Trust, Inc. (INRE) has filed its 2023 10-K report.</b>

AI Summary

Inland Real Estate Income Trust, Inc. (INRE) filed a Annual Report (10-K) with the SEC on March 13, 2024. Filed 10-K for the fiscal year ending December 31, 2023. Company name is Inland Real Estate Income Trust, Inc. (INRE). Incorporated in Maryland (MD). Business address: 2901 Butterfield Road, Oak Brook, IL 60523. Previous names include Inland Monthly Income Trust, Inc. and Inland Core Assets Real Estate Trust, Inc.

Why It Matters

For investors and stakeholders tracking Inland Real Estate Income Trust, Inc., this filing contains several important signals. This filing provides a comprehensive overview of the company's financial performance, operations, and risk factors for the fiscal year 2023. Investors can use this report to assess the REIT's stability, growth prospects, and potential risks in the real estate market.

Risk Assessment

Risk Level: medium — Inland Real Estate Income Trust, Inc. shows moderate risk based on this filing. The company operates in the real estate investment trust sector, which is subject to market fluctuations, interest rate changes, and property-specific risks, as detailed in the filing's risk factors section.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand INRE's current financial health and future outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report period)
• 2024-03-13 — Filing Date (Date of submission)
• 6798 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• Inland Real Estate Income Trust, Inc. (company) — Filer name
• INRE (company) — Ticker symbol
• 20231231 (date) — Fiscal year end
• 20240313 (date) — Filing date
• Oak Brook, IL (location) — Business address city and state
• Maryland (location) — State of incorporation

FAQ

Industry Context

The company operates as a Real Estate Investment Trust (REIT), a sector focused on owning, operating, or financing income-producing real estate.

Regulatory Implications

As a publicly traded company, Inland Real Estate Income Trust, Inc. is subject to regulations set forth by the Securities and Exchange Commission (SEC).

What Investors Should Do

1. Analyze the company's financial statements for the fiscal year ended December 31, 2023.
2. Review the risk factors section to understand potential challenges and threats to the company's operations.
3. Examine any disclosures regarding executive compensation and corporate governance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-13: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the 2023 10-K filing, providing the latest annual financial overview for Inland Real Estate Income Trust, Inc.

Key Financial Figures

• $0.001 — ction 12(g) of the Act: Common Stock, $0.001 par value per share Indicate by check
• $19 — e rent ("ABR") per square foot averaged $19.61, $19.10 and $17.79, respectively, fo
• $19.10 — "ABR") per square foot averaged $19.61, $19.10 and $17.79, respectively, for all prope
• $17 — square foot averaged $19.61, $19.10 and $17.79, respectively, for all properties ow
• $16 — s. ABR including ground leases averaged $16.79, $16.42 and $15.04 as of December 31
• $16.42 — ncluding ground leases averaged $16.79, $16.42 and $15.04 as of December 31, 2023, 202
• $15.04 — ound leases averaged $16.79, $16.42 and $15.04 as of December 31, 2023, 2022 and 2021,
• $278 million — il Property Fund, LP, for approximately $278 million. Although we are not actively pursuing
• $19.86 — reported an estimated per share NAV of $19.86 and on March 5, 2024, we reported a new
• $19.17 — ported a new Estimated Per Share NAV of $19.17. Beginning with the first quarter 2024
• $7.0 m — through the DRP with total proceeds of $7.0 million, $7.3 million and $3.7 million fo
• $7.3 million — RP with total proceeds of $7.0 million, $7.3 million and $3.7 million for the years ended De
• $3.7 million — ceeds of $7.0 million, $7.3 million and $3.7 million for the years ended December 31, 2023,
• $6.0 m — law. Repurchases through the SRP were $6.0 million, $3.6 million and $2.8 million fo
• $3.6 million — ases through the SRP were $6.0 million, $3.6 million and $2.8 million for the years ended De

Filing Documents

• ireit-20231231.htm (10-K) — 4256KB
• ireit-ex21_1.htm (EX-21.1) — 41KB
• ireit-ex23_1.htm (EX-23.1) — 3KB
• ireit-ex31_1.htm (EX-31.1) — 15KB
• ireit-ex31_2.htm (EX-31.2) — 15KB
• ireit-ex32_1.htm (EX-32.1) — 9KB
• ireit-ex32_2.htm (EX-32.2) — 9KB
• 0000950170-24-030856.txt (&nbsp;) — 14387KB
• ireit-20231231.xsd (EX-101.SCH) — 1640KB
• ireit-20231231_htm.xml (XML) — 2840KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 7 Item 1B. Unresolved Staff Comments 34 Item 1C. Cybersecurity 34 Item 2.

Properties

Properties 35 Item 3.

Legal Proceedings

Legal Proceedings 38 Item 4. Mine Safety Disclosures 38 Part II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39 Item 6. Reserved 41 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 42 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 52 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 54 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 54 Item 9A.

Controls and Procedures

Controls and Procedures 54 Item 9B. Other Information 54 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 54 Part III Item 10. Directors, Executive Officers and Corporate Governance 55 Item 11.

Executive Compensation

Executive Compensation 61 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 62 Item 13. Certain Relationships and Related Transactions, and Director Independence 63 Item 14. Principal Accountant Fees and Services 67 Part IV Item 15. Exhibits and Financial Statement Schedules 69 Item 16. Form 10-K Summary 69

Signatures

Signatures 73 Summary of Risk Factors The risk factors detailed in Item 1A titled "Risk Factors" in this Annual Report on Form 10-K are the risks that we believe are material to our investors. Those risks are not all of the risks we face. The following is a summary of the principal risk factors detailed in Item 1A that make an investment in our securities speculative or risky. Risks Related to Our Business We have incurred net losses on a basis in accordance with U.S. generally accepted accounting principles ("GAAP") for the years ended December 31, 2023, 2022 and 2021 and may incur such net losses in the future, which has had and could in the future have an adverse impact on our financial condition, operations, cash flow, and our ability to service our indebtedness and pay distributions to our stockholders. The amount and timing of distributions, if any, may vary, and there is no assurance that we will pay distributions on an ongoing basis, if at all. We have paid and may continue to pay distributions from sources other than cash flow from operations, including the proceeds of our DRP. There is no established public trading market for our shares. Our stockholders may not be able to sell their shares under our SRP in the future, and, even if our stockholders are able to sell their shares under the SRP, or otherwise, they may not be able to recover the amount of their investment in our shares. We have previously suspended, and may in the future suspend, repurchases of shares under the SRP. The Estimated Per Share NAV of our common stock is based on a number of assumptions and estimates that may not be accurate or complete and is also subject to a number of limitations. Our charter authorizes us to issue additional shares of stock, which may reduce the percentage of our common stock owned by our other stockholders, subordinate stockholders' rights or discourage a third party from acquiring us. Market disruptions may adversely impact many aspect

Business

Item 1. Business General Inland Real Estate Income Trust, Inc. (which we refer to herein as the "Company", "we", "our" or "us") was incorporated on August 24, 2011 to acquire and manage a portfolio of commercial real estate investments located in the United States. We have primarily focused on acquiring retail properties and continue to target a portfolio substantially all of which is comprised of grocery-anchored properties as described below. We have invested, and may continue to invest, in joint ventures or acquire other real estate assets such as office and medical office buildings, multi-family properties and industrial/distribution and warehouse facilities if our management believes the expected returns from those investments exceed that of retail properties. We also may invest in real estate-related equity securities of both publicly traded and private real estate companies, as well as commercial mortgage-backed securities ("CMBS"). Our sponsor, Inland Real Estate Investment Corporation, referred to herein as our "Sponsor" or "IREIC," is an indirect subsidiary of The Inland Group, LLC ("Inland"). Various affiliates of our Sponsor provide services to us. We have no employees and are externally managed and advised by IREIT Business Manager & Advisor, Inc., referred to herein as our "Business Manager," an indirect wholly owned subsidiary of our Sponsor. Our Business Manager is responsible for overseeing and managing our day-to-day operations. We have entered into an agreement with Mark Zalatoris (the "Agreement") to, among other things, compensate him for performing services as the Company's president and chief executive officer. In connection with entering into the Agreement, we entered into the Fourth Amended and Restated Business Management Agreement ("Fourth Business Management Agreement") with the Business Manager to, among other things, reduce the business management fee payable to the Business Manager by the amount of any payments made to Mr. Zalatori

View Full Filing

View this 10-K filing on SEC EDGAR