Inland Real Estate Income Trust, Inc.

What they do

The company was formed in 2011 and sponsored by Inland Real Estate Investment Corporation, and has elected to be taxed as a REIT since the 2013 tax year. It focuses on acquiring and owning a portfolio substantially all of which is grocery-anchored or grocery shadow-anchored retail shopping centers, primarily multi-tenant necessity-based centers in major regional and growing secondary U.S. markets. It has no employees and is externally managed by IREIT Business Manager & Advisor, Inc., an indirect wholly owned subsidiary of the sponsor, which oversees day-to-day operations.

Revenue drivers

• Retail rental income from grocery-anchored centers — Rents from the 52-property, 7.2 million-square-foot retail portfolio; as of December 31, 2025, grocery-anchored or grocery shadow-anchored properties represented 87% of annualized base rent.
• Anchor/big-box tenancy — Anchor tenants generally occupying 10,000 or more square feet comprised 49% of total ABR as of December 31, 2025, and drive center traffic.
• Junior box and small shop tenancy — Junior box tenants of 5,000 to 9,999 square feet were 13% of ABR and small shop tenants under 5,000 square feet were 38% of ABR as of December 31, 2025.
• Renewal and new leasing activity — In the six months ended June 30, 2026, the company signed 69 leases covering 607,100 square feet, including 49 comparable renewal leases at a 6.6% average increase in annualized base rent.

Recent performance

Annual revenue grew from $119.1 million in 2021 to $153.6 million in 2025, though revenue was essentially flat between 2023 ($150.0 million) and 2025 ($153.6 million). Net loss narrowed to $11.0 million in 2025 from $15.0 million in 2024, with diluted EPS of negative $0.31 versus negative $0.41. Operating cash flow has ranged between $39.4 million and $48.1 million over the past five years, totaling $42.7 million in 2025. Quarterly revenue was $38.7 million in Q4 2025, $38.9 million in Q1 2026 and $37.8 million in Q2 2026. The dividend of $0.5424 per share has been unchanged since 2022, while the company has reported net losses each year from 2021 through 2025.

Strategy

The company's stated focus is acquiring and owning grocery-anchored retail properties, and management continually evaluates opportunities to sell certain assets and redeploy capital into strategically located grocery-anchored centers. The board asked the Business Manager to evaluate the business plan and present alternatives and enhancements aimed at accretively increasing assets and cash flow, enhancing capital (primarily equity) and providing liquidity to stockholders over time. The board's recent review of strategic alternatives did not result in a liquidity event for stockholders. The company has not raised equity through an underwritten or best-efforts offering since its 2012-2015 offering, which raised $834.4 million, and its DRP was suspended in September 2024 and reinstated in February 2026. There were no acquisitions or dispositions during 2025.

Risks

• No liquidity event from strategic review — The board's recent review of strategic alternatives did not result in a liquidity event, and the 10-K states there is no assurance that any future review or resulting strategies will create liquidity for stockholders.
• Persistent net losses — The company reported net losses every year from 2021 through 2025, including negative $11.0 million in 2025 and negative $15.0 million in 2024.
• External management and sponsor dependence — The company has no employees and relies on IREIT Business Manager & Advisor, Inc. and sponsor affiliates for management, with the Business Management Agreement expiring March 31, 2027 and the master management agreement renewing annually after December 31, 2026.
• DRP reinstatement uncertainty — The dividend reinvestment plan was suspended from September 2024 until February 2026, and the 10-K states there is no assurance stockholders will participate at prior levels now that it is reinstated.

Outlook

The 10-K provides no numeric guidance; management says the board has asked the Business Manager to evaluate the business plan and present alternatives and enhancements for board review. It cautions that the board's recent strategic alternatives review did not result in a liquidity event and that there is no assurance future strategies will increase capital resources or create liquidity for stockholders. The company enters 2026 with no acquisitions or dispositions completed in 2025 and a reinstated DRP as of February 2026.